Fears of recession in the global economy and rising inflationary pressure are denting the sentiment for the digital token market.
Among the losers, Solana plunged about 8 per cent, while Polkadot tumbled more than 6 per cent. Ethereum and BNB dropped 5 per cent each, and Bitcoin was also in the red.
The global cryptocurrency market cap was trading at the $892.72 billion mark, dropping more than 2 per cent in the last 24 hours. However, the total cryptocurrency trading volume zoomed more than 11 per cent to $62.65 billion.
What’s cooking in India
Cryptocurrencies that were the flavour of the season till about last year have seen a sudden fall on every matrix for the exchanges- trading volumes, value and profitability- as a crypto winter sets in following a big drop in prices in the last few months.
The sudden shift in market sentiment from exuberance to fear has led to exchanges resorting to a combination of short- and long-term measures to manage working capital.
Influencers, rather than celebrities, were behind more than 92 per cent of crypto-related advertisement violations in India between January 2022 and May 2022, according to data released by the Advertising Standards Council of India.
Banking giant Citigroup has made a series of comments on mortgages backed by cryptocurrencies and the rise of digital real estate in the metaverse amid a pullback in the crypto markets.
Grayscale Investments’ application to convert its $13.5 billion Bitcoin Trust into a spot-based bitcoin ETF was denied by the SEC on Wednesday despite growing consensus that the product is a lower-cost and more accessible way for investors to take exposure to bitcoin, said CoinDCX Research Team.
“While the outcome is less than desirable, it is crucial that industry stakeholders not lose faith in the potential of crypto assets, and continue to build and develop products in support of the growth of the crypto ecosystem,” it added.
The US securities regulator rejected a proposal to list a spot bitcoin exchange-traded fund (ETF) by Grayscale, one of the world’s biggest digital asset managers, on the NYSE Arca exchange.
Crypto hedge fund Three Arrows Capital (3AC) has entered liquidation, a person familiar with the matter told Reuters, in the latest sign of the market downturn hurting the crypto industry.
A report released by blockchain research firm Nansen draws a straight line from Terra to the sinking price of lido staked ether (stETH).
The free fall in crypto markets could continue because of the system’s complexity, Deutsche Bank (DB) said in a report. Macro risk is also a concern.
Tech View by Giottus Crypto Platform
APE coin, the governance token of the popular NFT series BAYC (Bored Ape Yacht Club), had quickly made it into the top 50 cryptocurrencies by market cap after its launch on March 17, 2022.
In its short lifespan, APE has reached an ATH of $24, lost 83% value against it and is trading at around $4.5 today. The crypto market turbulence hit APE hard – it shed 65% of its April gains in May.
However, the coin seems to be on the path to recovery after the release of a BAYC-themed music video by Eminem and Snoop Dogg. APE has breached its declining trendline resistance, flipping it into support. It is trading close to its .236 fib level of $4.6.
APE needs to get past the psychological resistance of $5.5 to confirm an actual rebound. The next resistance is its 50-day moving average is at $6. Despite the improving trading volumes, APE’s RSI shows a neutral signal at 44. In case APE is unable to sustain its momentum, it will have to retest its trendline at $3.7.
Resistance: $5.5, $6, $6.2
Support: $3.7, $3
(Views and recommendations given in this section are the analysts’ own and do not represent those of ETMarkets.com. Please consult your financial adviser before taking any position in the asset/s mentioned.)