Bitcoin, Ethereum, Dogecoin shed up to 5% each

New Delhi: The cryptocurrency market, in line with global equity markets, witnessed steep falls on Thursday. The mushrooming tensions between Russia and Ukraine have dampened the sentiments once again.

The largest cryptocurrency and other altcoins declined into red territory after Russian president Vladimir Putin ordered military operation in eastern Ukraine. Putin made the announcement in a televised speech at the same time as the UN Security Council was urging him to give peace a chance.

Barring Terra all of top digital tokens were trading lower. Avalanche plunged more than 7 per cent, whereas Bitcoin, Ethereum, Cardano, and Dogecoin tumbled between 4 and 5 per cent.

The global cryptocurrency market cap today was at $1.71 Trillion, a 5 per cent drop in the last 24 hours.

What’s cooking in India
Reserve Bank Deputy Governor Michael Patra on Wednesday said the central bank’s views about cryptocurrencies might have delayed the government’s proposed legislation on crypto assets.

Patra said India will proceed very gradually on the subject as there are concerns on privacy, its impact on monetary policy formulation and energy intensity.

He also emphasized that the Central Bank Digital Currency (CBDC) will be introduced in FY23 as announced by Finance Minister Nirmala Sitharaman in the Budget speech.

Also, now advertisers will have to prominently carry a disclaimer for crypto products and non-fungible tokens mentioning that these products are ”unregulated and can be highly risky”, according to the Advertising Standards Council of India (ASCI).

ASCI has released guidelines for crypto or virtual digital assets related advertisements, which will be applicable on or after April 1. Earlier advertisements must not appear in the public domain unless they comply with the new guidelines after April 15, 2022.

Global
updates

• The eastern Chinese province of Zhejiang said it is introducing punitive electricity prices for crypto miners, following in the footsteps of the Hainan province and Inner Mongolia region even as authorities work to eliminate the industry.

• Warner Music Group (WMG) has partnered with blockchain gaming company Splinterlands to develop play-to-earn (P2E) games for its roster of artists, the company announced.

Expert view
Mirroring traditional markets, the crypto market capitalisation dipped into the red as geopolitical uncertainties grew, drawing an increasingly interconnected relationship between digital assets and the financial markets, said CoinDCX Research Team.

With no end in sight to the ongoing geopolitical conflict, the traditional market and the digital asset sector may face extended uncertainties in the road ahead, it added.

Tech view by Giottus Crypto Exchange
One of the most popular metaverse projects in the crypto space, The Sandbox is a play-to-earn game where players build their own games, digital assets and get to personalize them.

It uses SAND – its native token – to facilitate transactions and player engagement. Its popularity can be witnessed in its 2021 performance, where it went from $0.04 to an all-time high of $8.51 – a 24,000 per cent increase.

Since then, however, it has also corrected nearly 70 per cent as it bounces between a long parallel channel post a corrective ABC Elliot wave and struggles to stay afloat while Bitcoin’s bearish moves affect the broader altcoin market. Like many other altcoins, however, it seems to be headed for a double bottom.

This level is in confluence with the middle of the parallel channel and may send it across resistances at $3.96 and $4.82 should bullishness resume. In the bearish case, its recent low of $2.55 is crucial. If this level is lost, the next viable support is at $2.34 and $2.03.

Major levels:

Support: $2.55, $2.34, $2.03

Resistance: $3.43, $3.96, $4.82