The ongoing turmoil in Japan's stock market coupled with geopolitical tensions erupting in multiple parts of the world is keeping the crypto sector low on profits. Bitcoin on Wednesday, August 7 reflected a loss of 3.25 percent to trade at $57,261 (roughly Rs. 48 lakh) on international exchanges like CoinMarketCap. Even on Indian exchanges, Bitcoin incurred losses. On CoinDCX for instance, the asset is trading at $61,733 (roughly Rs. 5.18 lakh) after seeing a dip of 1.54 percent. Crypto analysts predict that as more whales buy the dip, BTC price could see a spike.
“Bitcoin dominance has notably increased and is now over 57 percent, a level not seen since 2021. During the market correction earlier this week, Bitcoin whales accumulated nearly 30,000 BTC valued at $1.6 billion (roughly Rs. 1,34,294 crore). The crypto market is showing signs of recovery and this momentum is driven by increased whale activity and substantial institutional inflow,” Vikram Subburaj, CEO, Giottus told Gadgets360.
Ether managed to bag profits as opposed to Bitcoin on Wednesday as per the crypto price tracker by Gadgets360. Ether recorded a profit of 4.37 percent on Wednesday, bumping its trading value to $2,415 (roughly Rs. 2 lakh) on both, national as well as international exchanges.
“ETH was trading in red over the past seven days in the ‘Lower High Lower Low' pattern. On August 5, ETH fell to its eight-month low price point, just above $2,100 (roughly Rs. 1.76 lakh). This drop was driven by ETH transfers by jump trading, escalating geopolitical tensions, and concerns about the global economy, triggering a broader market correction,” the ZebPay trade desk told Gadgets360. “The plunge in Ether's price has also been accompanied by a decrease in network activity, with the number of new and active addresses declining as well.”
Cryptocurrencies that followed BTC on the loss-making side of the crypto chart on Wednesday include Binance Coin, USD Coin, Dogecoin Iota, Augur, and Circuits of Value.
Meanwhile, several cryptocurrencies trailed behind ETH with profits on Wednesday. These include Tether, Solana, Ripple, Cardano, Tron, Avalanche, Shiba Inu, and Polkadot.
With the market being volatile for now, analysts have sounded an alert to the trader community.
“The low trading volumes and a bearish market indicate cautious investor sentiment. While retail investors offloaded their BTC holdings during the recent crash, whales accumulated more. The Relative Strength Index (RSI) at 49 suggests selling pressure may soon increase,” Avinash Shekhar, Co-Founder and CEO, Pi42 told Gadgets 360.
The overall crypto market cap, as of Wednesday, stands at $2.02 trillion (roughly Rs. 1,69,54,233 crore) after clocking a gain of 2.65 percent in the last 24 hours, showed CoinMarketCap.
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