Aside from Bitcoin and dollar-linked stack coins, all other seven out of the top-10 digital tokens traded lower at. 8.30 IST. Gains in Bitcoin were limited. Solana fell 3 pct.
The global crypto market value fell by almost one percent to $ 1.96 trillion compared to last day. Total crypto market volume, meanwhile, zoomed by about 44 percent to $ 102.63 billion.
Bitcoin had breached the $ 40,000 level on Monday before coming back quickly. However, the derived data show that traders lack confidence and the crypto winter is likely to last longer.
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Political advisers and legal experts say most countries are unable to formulate a policy for virtual currencies as there are no precedents other than bans, which have been largely ineffective.
Crypto’s growing popularity has caught the attention of lawmakers as it could undermine state oversight of monetary policy, capital flows and illegal activity if left unchecked.
Investor confidence appears to have shaken following the Federal Reserve’s December meeting of the Federal Open Market Committee.
The monetary authority showed commitment to lower its balance sheet and raise interest rates by 2022. Fed Chairman Jerome Powell is scheduled to testify before the US Congress today.
El Salvador’s President Nayib Bukele has claimed that officials will be able to use geothermal energy from one of the country’s inactive volcanoes to power its Bitcoin City project.
Edul Patel, CEO and co-founder, said Mudrex, Bitcoin slipped below the $ 40,000 mark, but the trend suggests that with the decline of major cryptocurrencies, there has been an increase in the supply of stablecoins.
“Many investors are switching to these stable currencies to hedge volatility. The sharp dive is experienced not only in cryptocurrencies, but also technology stocks and software stocks,” he added.
Tech View by Giottus Cryptocurrency Exchange
Ethereum (ETH), the second largest cryptocurrency, had a phenomenal run in 2021, going from $ 1,000 to $ 5,000 within a few months. It also initiated important upgrades and became deflationary, cementing its long-term outlook. Here’s what you can expect from Ethereum in the short term.
ETH has formed several bear flags since November, which successfully unfolded into a steep dive from $ 5,000 territory to close to $ 3,000 today. But with the daily RSI now at almost the bottom and sales volume drying up, indications of a reversal seem imminent. The ETH / BTC ratio also hit an important guideline on the higher time frames (at 0.073), indicating that Ethereum can outperform the largest crypto in the market in the short term.
Currently, the ETH is to tackle the holiday frame resistance at $ 3,370, followed by one at $ 3,655. In the shorter time frame, even turning $ 3,130 should provide optimism. On the downside, ETH has already regained support at the $ 3,000 psychological level. Therefore, confidence in an upward movement remains high.
Support: $ 2,908, $ 3,000
Resistance: $ 3,130, $ 3,370, $ 3,655