Crypto Analysis

Crypto Market Slumps 5.3%, Bitcoin Stays in Blues

The cryptocurrency market is witnessing a period of fear: things have been going downtrend for two days in a row

Crypto Market Slumps 5.3%, Bitcoin Stays in Blues
Crypto Market Slumps 5.3%, Bitcoin Stays in Blues

The global crypto market tanked by 5.3 per cent to stand at $1.3T as of 9am IST as the biggest spike in US inflation in 13 years rattled investors. The cryptocurrency market is currently witnessing an unforeseen period of fear on the part of the investors. Contrary to the weekly norm of a bullish investor sentiment, things have been going downtrend for two days in a row after the markets recovered marginally over the weekend. Total trade volume, however, showed a marginal growth of 1.5 per cent.

In what appeared to be a recovery phase for Bitcoin (BTC) in the morning of July 13 quickly turned bitter as it continued to face selling pressures in the market to fall by almost 3.8 per cent to close at $31,870. This is the first time in two weeks that BTC has lost the crucial support level at $32,000. Bulls need to step in near $31,200 or risk exposing BTC further down to $30,000 and subsequently to $28,000.

According to the data released by CryptoQuant, an on-chain and market data firm, BTC inflows to exchange platforms have increased over the previous day signalling an intention to sell. There is currently no additional demand for purchasing these coins, hence, impacting the BTC price.

Ethereum (ETH) continues to face deflationary pressures ahead of its EIP-1559 update. ETH noted a significant decline of 6 percent for the second consecutive day to fall below the critical support level of $2,000. It closed at $1,880 without testing its resistance. In order to break its downstream flow, ETH needs to close above the $2,000 level in the upcoming days. Due to low network congestion, ETH’s gas fees are at an all-time low. This could be a positive sign that might attract investors away from ETH’s near competitors like Cardano (ADA).

The market continues to be highly correlated to BTC. This is evident in the 4-8 per cent drop registered by most key altcoins from the previous day. Dominating the market share by 46 per cent, BTC holds the key to drive the broader market out from its current bearish phase.

Top Gainers today:

Axie Infinity (AXS): 13.6%

Flow (FLOW): 8.4%

Stacks (STX): 6.4%

Top Losers today:

Cosmos (ATOM): -17.4%

Synthetix (SNX): -15.38%

KuCoin Token (KCS): -14.6%

The analysis includes the top 100 coins only as of 9am IST

Source: CoinMarketCap

Crypto News at a Glance:

The Indian Government has not included the cryptocurrency bill for discussion in the upcoming monsoon session of the Parliament among the 23 bills listed to be tabled.

Coinbase has integrated Polygon (MATIC) as a scaling solution into its non-custodial wallet. This integration will help investors to use decentralised applications (dApps) built on top of the network.

Clear Junction, one of Binance’s payment partners in Europe, has suspended facilitating payments to the crypto exchange. In Europe, Binance has faced several regulatory pressures in the previous couple of weeks.

The UK's Metropolitan Police seized around $250 million worth of cryptocurrency as part of an ongoing investigation into international money laundering.

CONMEBOL, the South American Football Federation has announced its partnership with Ethernity Chain to mint 2021’s South American Football Cup ‘Copa America’ as an NFT.

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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