Barring Terra and Polkadot, all other nine out of the top 10 digital tokens were trading lower at 9.30 IST. Cardano, XRP and Solana tanked 5-6 per cent each.
The global crypto market cap edged marginally lower, about a per cent, to $2.35 trillion mark compared to the last day. However, the total crypto market volume tanked over 21 per cent to $108.89 billion.
With Bitcoin seemingly having found support at its 50-week moving average, altcoins are also starting to make decent rebounds – the outperformer being MATIC, which was up close to 14 per cent, said CoinDCX Research Team.
“The next couple of weeks will be critical for Bitcoin and the broader crypto markets. Not the most ideal situation to be in for the average holder but certainly paradise for the fervent trader,” it added.
What’s cooking in India
Cryptocurrency exchanges may be required to seek licenses from the designated regulator, as is the case with equity and commodity trading platforms, to ensure full oversight of the digital assets, said an official related to the matter.
They will be subject to net-worth norms and have to meet ‘fit and proper’ criteria like other exchanges under the proposed law.
The government has listed the Cryptocurrency and Regulation of Official Digital Currency Bill, 2021, for introduction in the ongoing winter session of Parliament. The cabinet is yet to take up the bill for approval.
India is considering Sebi appointing its capital markets regulator to oversee cryptocurrencies, according to people with knowledge of the matter, as authorities look to classify them as financial assets.
Expert Take
More than 100 million Indians will have ownership or exposure to cryptocurrencies over the next two-three years, holding assets worth more than $50 billion, said Nischal Shetty, founder, WazirX.
Shetty said he sees the cryptocurrency universe in India growing exponentially with more than 1,000 startups working on various technological aspects of the blockchain.
India currently has more than 15 million cryptocurrency users in the country holding assets worth more than $6 billion.
Bitcoin and Bulls
Bitcoin is inching higher towards $55,000 following this weekend’s flash crash, with chart watchers suggesting the rally may push the largest cryptocurrency back to the previous highs.
Craig Wright, a computer scientist who claims to be the inventor of Bitcoin, prevailed in a civil trial verdict against the family of a deceased business partner that claimed it was owed half of a cryptocurrency fortune worth tens of billions.
Global Update
While the crypto fear and greed index is still teetering at 28 (fear), huge institutions and investors seem unfazed, with prominent hedge fund, Three Arrows Capital, scooping up 91,477 Ethereum ($400 million) in two days.
Tech View by BuyUcoin Cryptocurrency Exchange
SAND price is currently consolidating after a minor recovery from the brutal sell-off on December 4. It is already moved up more than 8x since October 2021. After months of consolidation, SAND initiated a massive rally as metaverse got more spotlight, rising by over 900% (from $0.7 to $8.11) by the end of November.
SANDBOX is currently moving in a rising parallel channel, trading around the lower support level of the channel. A strong bounce off of crucial support may trap buyers. Therefore, a breakout from the channel would be the most likely scenario.
ET CONTRIBUTORSRSI and MACD are giving mixed signals; RSI is just below the 50-line while the MACD is still positive but has lost strength. The bears have more control as bulls need more majority to bring positive certainty in the market.
Major Levels
Support: $1.97, $1.88, $1.73
Resistance: $2.31, $2.4
Time is in UTC and the daily time frame is 12:00 AM – 12:00 PM UTC
(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.)
