Crypto Market Rebounds 2%, Bitcoin Gains

Prospects of legislations and regulatory crackdowns in various economies drive cryptocurrencies

Crypto Market Rebounds 2%, Bitcoin Gains
Crypto Market Rebounds 2%, Bitcoin Gains

The global crypto market recovered marginally by 2 per cent to stand at $1.4T as of 9 am Indian time amid talks of legislations and regulatory crackdowns in various countries. The total market trade volume, however, showed a decline of 7 per cent. The Fear and Greed Index, which tracks the market sentiment, relates this market scepticism to the investor fear of entering the market in its current bearish lull.

After reaching $32,600 levels the previous day, Bitcoin (BTC) broke the $33,000 mark to bring some relief to the market. It continued to gain by a modest 2.2 per cent to close near $33,750 ahead of the weekend. It has steered clear of the support levels at $32,650 and $31,790. However, BTC failed to break the resistance level of $34,000. With hardly any major slides or jumps, the overall day, otherwise, remained uneventful for BTC with its current trading volumes declining by 4 per cent in the last 24 hours. BTC continued to dominate the broader market with a 45 per cent market share.

Ethereum (ETH), the largest altcoin by market cap, continued to face deflationary pressures amid its much-anticipated EIP-1559 upgrade that has been postponed to August. It registered a slight gain of 0.5 per cent in the last 24 hours to close at $2,120. ETH led by market bulls failed to test the first resistance level at $2,180 while steering clear of the crucial support levels like $2,100 and $2,000.

Among other major cryptocurrencies, Dogecoin (DOGE) registered a considerable 7 per cent gain after being backed yet again by Elon Musk, while Ripple (XRP), Polkadot (DOT) and Uniswap (UNI) gained modestly by 2 to 5 per cent.

Even though BTC is seeing some relief rally after breaking below $34,000 on Thursday, it continues to trade in the range between $30,000 and $40,000 since May. Until it breaks out, it is expected to move sideways for a while.

Top Gainers of the Day

  1. Axie Infinity (AXS): 48.3%
  2. Flow (FLOW): 16.6%
  3. Syntherix (SNX): 16.3%

Top Losers of the day

  1. Huobi Token (HT): -2.5%
  2. Telcoin (TEL): -2.0%
  3. Theta Fuel (TFUEL): -1.4%

[Analysis includes top 100 coins only as of 9am IST]

Source: CoinMarketCap

Crypto News at a Glance

  1. Santander, a leading Spanish bank, has announced that its UK customers would no longer be allowed to use their debit and credit cards to deposit funds to their Binance account. Binance, one of the top global crypto exchanges, continues to face regulatory challenges in the UK.
  2. In a bid to regulate cryptocurrencies, the European Union is planning to establish a new department to counter money laundering and other illegal activities funded by cryptocurrencies.
  3. Wall Street giant Goldman Sachs has made a prediction that Ethereum has the potential to overtake Bitcoin in the coming years. Goldman Sachs is the latest in a string of investors to name Ethereum as a better bet than Bitcoin.
  4. Tesla Founder Elon Musk yet again voiced support to the meme coin DOGE over Bitcoin and Ethereum in a response to dogecoin investor Matt Walace on Twitter. He says dogecoin’s potential to maximise base layer transaction rate and minimising transaction cost wins over the inefficient multilayer ergonomics of BTC and ETH.

DISCLAIMER: Views expressed are the author's own, and Outlook Money does not necessarily subscribe to them. Outlook Money shall not be responsible for any damage caused to any person/organisation directly or indirectly.

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