New Delhi: Major cryptocurrencies traded mixed on Wednesday as investors took some money off the table. Most of the meme tokens won, led by Dogecoin. The crypto has regained its place as the sixth largest digital coin thanks to a 15 percent rally. Bitcoin and Ethereum stayed lukewarm.
The volatility of the crypto markets has been decreasing lately, but analysts expect prices to stay in the range for the next few sessions. Long-term investors are buying the leading token and several altcoins are at lower levels while traders are making profits.
Coinbase Global has launched a collaboration with Apple and Google from Alphabet Inc. that will allow users to add cards from their accounts to the two technology giants’ payment apps. With the Coinbase card that is added to the wallets, everyday goods can be purchased with digital currencies. The company announced that it would automatically convert all cryptocurrencies to US dollars.
Domestically, top banks were still reluctant to open cryptocurrency exchanges and merchants, despite the Reserve Bank of India making it clear that payment services cannot be denied based on a previous regulatory ban. Several banks have instructed customers not to use bank accounts to purchase cryptos.
Leading institutions such as SBI, HDFC Bank, Axis Bank, and ICICI Bank have advised various crypto exchanges that crypto trading-related services are unlikely to resume immediately. However, some exchanges are hoping smaller banks will step in to do business with them.
The Internet and Mobile Association of India (IAMAI) has welcomed the advice of RBI to discourage banks from referring to their 2018 circular. Also, IAMAI’s Blockchain and Crypto Assets Council said it has put in place a self-regulatory code of conduct that will result in all members of the crypto exchange voluntarily adhering to KYC, tax and other norms.
“The crypto market seems to be in a state of consolidation. Although the low volatility could be a good sign, the low trading volume in Bitcoin over the past two days suggests that traders are cautious. This consolidation was expected after a period of euphoria, “said Edul Patel, CEO and co-founder of Mudrex.
Analysts advise investors to remain cautious despite the assumption that the market will see an upward trend in the next few days and possibly weeks.
Crypto prices from 9:30 a.m. IST (Source: coinmarketcap.com)
Bitcoin: $ 36,571.43, down 0.22%
Ether: $ 2,629.98, down 0.15%
Tether: $ 1.00, less than 0.04%
Kardano: $ 1.76, up 3.41%
Coin-Binance: $ 359.49, up 4.32%
Dogecoin: $ 0.3773 up 15.37%
XRP: $ 1.01 down 2.11%
USD coin: $ 1, minus 0.02%
Speckle: $ 23.71, up 5.36%
Peel off: $ 27.13, down 1.12%
Tech View from ZebPay Trade Desk
The leading assets by market cap as well as several altcoins appear to have started a recovery rally and most of them have been on an upward trend for the past week. While BTC and ETH saw massive drops, both by 50%, in the third week of May, leading altcoins namely UNI, XRP, BNB and BCH also saw similar patterns.
This trend suggests that traders have started buying at these lower levels, which helped the rally. The decline had a dual impact on the crypto community as long-term investors refer to this fall as a buying opportunity. On the flip side, short-term traders take this opportunity to liquidate their positions for fear of a further decline in the markets.
Institutional investors have used this correction to add BTC to their portfolios as BTC acts as a good inflation hedge and dominates the crypto market. Therefore, a drop below $ 30,000 seems unlikely. This doesn’t mean a quick rebound will set in, but it does suggest that the asset has strong fundamentals. We assume that prices should remain in a relative range for the next few days. Since BTC typically defines the market trend and altcoins usually follow the trend with a slight delay, we assume that large altcoins will also behave similarly.
The time is in UTC and the daily time frame is 12:00 PM – 12:00 PM UTC
(The views and recommendations in this section are the analysts’ own views and recommendations and do not reflect those of ETMarkets.com. Please consult your financial advisor prior to entering into any position in the identified stock (s).