New Delhi: The cryptocurrency market was bleeding Thursday with a sharp fall following corrections in global stock markets. The hawkish stance of Federal Reserve and expectation of early rate hikes have dampened the sentiments of investors.
Barring the dollar-pegged USD Coin, all other nine out of top 10 digital tokens were trading with sharp fall at 8.30 am IST. Polkadot tanked 11 per cent, whereas Solana and Terra registered double-digit cuts.
The global crypto market cap tanked over 7 per cent to $2.07 trillion mark compared to the last day. The total crypto market volume jumped more than 14 per cent to $117.84 billion.
The latest selloff has changed the stacking order of crypto cart. The fall in Binance Coin has pushed it to fourth place in the sequence of top 10 tokens. USD Coin has raced past Cardano to become the sixth largest crypto token.
There were corrections across the board – in both the traditional and crypto markets – as the Fed floated the idea of an accelerated balance sheet runoff, said CoinDCX Research Team.
“Coupled with impending tapering and rate hikes, the overall macroeconomic outlook does not appear too optimistic for markets in general. Major asset classes have also been trading at lofty valuations far detached from fundamentals. We will likely see a continued selloff on growth, with rotation into value and havens,” it added.
Bitcoin will continue to take market share from gold as part of broader adoption of digital assets, making the often touted price prediction of $100,000 by advocates a possibility, according to Goldman Sachs Group.
“A couple of NFT collections like Capsule House has given over 2,000 per cent gain in less than a week’s time, and we are seeing massive volume inflow in open sea right now,” said Hitesh Malviya, Founder, Itsblockchain.
NFTs are going absolutely crazy right now. Opensea has already done more volume than the first half of last year in the last 4 days, he added.
The limited-edition Chakraverse NFT collection drop, based on legendary comic book writer Stan Lee-created Indian superhero, ‘Chakra The Invincible,’ has generated major interest with people from 14 countries participating in the auction.
Tech View by Giottus Cryptocurrency Exchange
Ravencon (RVN) is a Bitcoin fork launched in 2018, and like Bitcoin, functions as a peer-to-peer digital network for transfer of digital assets from one party to another. However, unlike Bitcoin, it is not compatible with ASIC (Application Specific Integrated Circuit) mining – that is by dedicated hardware.
As a result, it is a more ‘democratic’ coin as it can be mined by anyone with a computer. RVN is currently priced at $0.115 after a brief correction from its 45 per cent rally since the start of the new year.
After forming several bear flags since November, it has now reclaimed those levels. However, after the market-wide dump in the early hours of today, it has now lost support both at the .236 retracement and .382 retracement of its rise.
To maintain a bullish trend, RVN must reclaim and hold the .382 retracement at $0.116, or worst-case scenario – the golden pocket at $0.1. The golden pocket would also align with a support trendline sourced from one of its December’s low and offer confluence. On the upside, RVN will need to reclaim the $0.125 resistance level and break past its local high of $0.139 to form a higher high to maintain a bullish market structure.
Support: $0.116, $0.1
Resistance: $0.125, $0.139
(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.)