New Delhi: Crypto markets traded flat during the early hours on Tuesday. The sentiments were spooked over the volatility in all the riskier assets.
Crypto analysts have started to wonder if bitcoin might hold up better than stocks in case of an economic downturn.
Barring BNB and the US dollar-pegged Tether, all top crypto tokens were in the red. XRP plunged about 3%, whereas BNB was up by similar gains. Dogecoin, Shiba Inu and Tron were among the top losers.
The global cryptocurrency market cap was trading flat, hovering around $800 billion, after slipping marginally in the last 24 hours. The total trading volume jumped about 54% to $34.65 billion.
The crypto market traded flat on Monday after Bitcoin plunged and Ethereum slipped below the $1,200 mark over the weekend.
What’s cooking in India
WazirX said that it recorded a 76% fall in users’ trading volumes from the start of 2022 to November 30, in what has been a brutal year for digital assets. In January-November 2021, the exchange clocked $43 billion in trade volumes.
CoinDCX published its proof of reserves with an audited report on Monday, which furnishes both sides of its reserve balance i.e. assets and liabilities and has been published in partnership with Coingabbar a crypto research firm.
Further, the balance has been duly certified by the statutory auditor, SGCO & Co. LLP, Chartered Accountants as per the format prescribed by the Institute of Chartered Accountant of India.
The Enforcement Directorate has attached proceeds of crime worth Rs 907 crore and arrested three people in cases related to money laundering by crypto exchanges, Parliament was informed on Monday.
Minister of State for Finance Pankaj Chaudhary said Central GST officers have detected Goods and Services Tax (GST) evasion worth Rs 87.60 crore by 12 crypto exchanges.
Expert take
Edul Patel, CEO & Co-Founder, Mudrex, said that most cryptos traded in the red in the last 24 hours as the bulls were not able to hold the gained initiatives. Bitcoin currently trades below the $17,000 level as prices continue to consolidate following the volatile weekend.
“Meanwhile, Ethereum remained unchanged since yesterday, as neither bulls nor bears had enough strength to make a sharp move,” he said. “Overall, the market sentiment remains volatile,” he added.
Global updates
Sam Bankman-Fried, founder of now-bankrupt crypto exchange FTX, appeared at court in the Bahamas although his lawyer said that the reason for the hearing was unclear, after a source told Reuters the former billionaire was expected to agree to be extradited to the United States.
Tech View by Giottus Crypto Platform
Despite the bear market, the open-source blockchain Algorand (ALGO) – managed to put in a few rallies over the past few months, assisted by its involvement in the FIFA World Cup. Now that the event has concluded, ALGO seems to be losing its gains fast.
The coin hit its lowest value in 2022 at $0.175 and is down more than 60% since November. It is now dangerously close to its all-time low of $0.147. With no clear support below and most trendlines lost, long positions on this ALGO can be a hard call to make.
ET CONTRIBUTORS
However, a long-term trendline stretching from June has already offered support around the $0.168 levels. ALGO is also fairly over-stretched from its 50-D and 200-D EMAs (located at $0.27 and $0.31 respectively), hinting that some reversal, or at the very least, consolidation, may hopefully be around the corner.
While it would need to clear the $0.24 level to decisively end its downtrend, ALGO remains a fundamentally strong project with several large adoption engagements to its name – from the country of El Salvador to the FIFA World Cup.
Major levels:
Support: $0.165, $0.15
Resistance: $0.18, $0.195
(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.)