The asset class seems increasingly likely to remain in the same price rut until the release of inflation numbers later this month and Federal Reserve’s meeting outcome, said analysts.
Barring Tron and US dollar-pegged Tether, all other tokens were trading higher on Friday. Polygon zoomed over 5 per cent, whereas Polkadot gained 3 per cent. Ethereum and Cardano gained more than 2 per cent each.
The global cryptocurrency market cap was trading higher at the $990.26 billion mark, dropping more than a per cent in the last 24 hours. However, the total trading volume dropped about 8 per cent to $62.76 billion.
Expert Take
Edul Patel, CEO and co-founder Mudrex said despite the fall, Bitcoin has not gone below the $19,000 level, which means that we might see its price trade sideways, thanks to concerns over the FOMC minutes and macroeconomic uncertainty.
“The second largest cryptocurrency, Ethereum, has been outperforming Bitcoin for quite some time now due to its recent network activity and the upcoming Merge,” he added. “It may likely break out of the $2,000 level before the Merge.”
The overall crypto market seems to have digested the anticipated rate hike and strict monetary policy indicated by Federal Reserve as there were no major fluctuations, said Tarusha Mittal, COO, UniFarm.
“Crypto investors are loyal and long-term holders of crypto assets can beat inflation and create long-term wealth. The selling pressure is expected to cool down in the coming weeks as the upcoming festive season will encourage investors to park their funds in digital assets for healthy returns,” Mittal added.
Global updates
Crypto lender Celsius Network, which is into bankruptcy proceedings, filed to return custody holders’ funds to them, ahead of a separate hearing to address ongoing questions about its efforts to restructure and relaunch its operations.
The distribution of funds to former customers of the defunct crypto exchange Mt Gox will begin on a repayment date to be set in “due course,” according to a notice to creditors.
In late 2020, U.S. federal prosecutors asked crypto exchange Binance to submit internal documents related to its money-laundering checks and communication involving CEO Changpeng “CZ” Zhao, Reuters reported.
Tech view by BuyUcoin cryptocurrency exchange
Bitcoin recovered from Fed shock and emerged as the most resilient crypto asset.
The dominance of Bitcoin is at 39.22% which is a marginal dip of 0.2% which hints toward increased participation from other crypto assets in the market movement.
The crypto market has digested the hawkish remarks by the Fed chief last week to tackle growing inflationary concerns. Bitcoin is expected to find a higher support level between the $22,000-$25,000 mark in the coming weeks supported by favourable macroeconomic factors.
(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.)