For the crypto market, not a lot has changed in the last 24 hours in-terms of profits returning to cryptocurrencies. Bitcoin on Thursday, June 8, recorded a loss of 2.05 percent to trade at $26,279 (roughly Rs. 21.7 lakh). In the last 24 hours, the value of Bitcoin dropped substantially by $651 (roughly Rs. 53,762). As per industry experts, the most valued cryptocurrency is presently facing strong resistance near the $27,400 (roughly Rs. 22.6 lakh) level. The SEC’s ongoing probe over Binance and Coinbase has emerged among major reasons why BTC and most other cryptocurrencies are undergoing a slump.
Ether slipped by 1.85 percent on Thursday, to trade at $1,834 (roughly Rs. 1.5 lakh). Tailing behind Bitcoin, Ether also recorded a significant price reduction of $42 (roughly Rs. 3,468) in the last 24 hours.
“While stablecoins are being looked at as a safe investment option by the community, rumours of SEC’s possible crackdown on Tether, has made the market somewhat sceptical. SEC continues to keep US crypto companies on an edge as they look for alternatives abroad. The market sentiment largely indicates ‘Sell’ with respect to moving averages for Bitcoin,” Rajagopal Menon, Vice President, WazirX, told Gadgets 360.
The valuation of the crypto sector dunked by 2.35 percent to hold onto the mark of $1.1 trillion (roughly Rs. 90,75,336 crore) in the last 24 hours, CoinMarketCap data shows.
“The market has come under selling pressure, with Bitcoin struggling to consolidate above the $27,000 (roughly Rs. 22 lakh) level, indicating a temporary dominance by bears. However, it is worth considering Bitcoin’s historical performance. For instance, after China’s ban on exchanges in September 2017, BTC prices soared by nearly 500 percent. Therefore, short sellers should exercise extreme caution. Furthermore, the decline in dollar reserves to 58 percent and the increase in gold reserves to 15 percent held by banks make this a critical juncture for Bitcoin,” Shubham Hudda, Senior Manager, CoinSwitch Markets Desk, told Gadgets 360.
Meanwhile, only a small number of cryptocurrencies managed to mint profits.
Google searches for cryptocurrency related keywords have sunk to a 29-month low in the backdrop of the ongoing fluctuations impacting the sector.
The Crypto Fear and Greed index has also remained “neutral” around the score of 53 for over a month now, indicating that the activity in the sector remains majorly unchanged for at least 30 days.
Despite this slowdown in market momentum, industry insiders remain optimistic that better days are in the cards for the overall crypto market.
“While some altcoins such as ETH and Lido (LDO) managed to recover from the previous fall in value as well, this price movement hasn’t been mirrored by several altcoins that failed to respond in a similar manner. There are several developments however, paving the way for a more interconnected and secure future of financial transactions. Banking infrastructure giant, SWIFT’s collaboration with blockchain infrastructure firm Chainlink marks a significant step towards enhanced blockchain interoperability,” the CoinDCX team told Gadgets 360, weighing in on the market situation.
The CoinDCX crypto exchange itself is gearing up to expand internationally. On June 7, the platform named Vijay Ayyar as the vice president of international markets.
Cryptocurrency is an unregulated digital currency, not a legal tender and subject to market risks. The information provided in the article is not intended to be and does not constitute financial advice, trading advice or any other advice or recommendation of any sort offered or endorsed by NDTV. NDTV shall not be responsible for any loss arising from any investment based on any perceived recommendation, forecast or any other information contained in the article.