The cryptocurrency euphoria sparked by wider adoption, growing institutional interest and awareness of blockchain projects has faded and is now replaced by fear of higher interest rates, unrest geopolitics and an impending recession.
With the exception of dollar-pegged stablecoins, all major crypto tokens and altcoins were bleeding. Terra lost over 49%, wiping out half of investors’ wealth, while Shiba Inu’s 17% drop removed it from the top 15 crypto tokens.
Bitcoin fell around 10% to its lowest level in 10 months, while Ethereum fell another 8%. Solana, Cardano, Avalanche, BNB plunged between 12-16% each.
The global cryptocurrency market capitalization was trading sharply lower at $1.42 trillion, falling about 8% in the past 24 hours. However, total cryptocurrency trading volume soared around 85% to $181.90 billion.
What’s cooking in India
In what could further dampen the mood of crypto investors in the country, the Goods and Services Tax (GST) council is considering a 28% tax on cryptocurrencies, on par with the current GST on casinos, bets and lotteries, according to several media. .
According to reports, services such as cryptocurrency mining as well as sales and purchases will likely attract the 28% GST if the proposal is passed at the next GST meeting. The date of the next meeting of the GST has not yet been decided.
Bitcoin tested its support at the $30,000 level yesterday, which is the lowest since July 2021. It broke its short-term uptrend and now sees lower support between $27,000 and $30,000, Edul said. Patel, CEO and co-founder of Mudrex.
Ethereum also hit a two-month low on Tuesday, he added. “Most cryptocurrencies have fallen significantly since last week on rising interest rates and geopolitical tensions on the other side. The next few days would be
for the entire crypto spectrum.”
- There has been a surprising amount of inflow into digital asset funds, the first time money has entered the funds in four weeks. This happened despite a drop in the prices of bitcoin (BTC) and most other cryptocurrencies.
- Cryptocurrency exchange Coinbase Global, Inc. (COIN) will continue to face headwinds as the company is expected to report first-quarter results Tuesday after the market close.
- Meta CEO Mark Zuckerberg said in a video on Monday that Instagram will begin testing non-fungible token (NFT) integrations this week.
- Luna Foundation Guard (LFG) will lend $1.5 billion in bitcoin (BTC) and terraUSD (UST) to defend the peg of its algorithmic stablecoin to the US dollar.
Technical view by Giottos Crypto Exchange
Ethereum, the second-largest crypto by market cap, fell along with the rest of the market. From a recent high near $3,600, it is now trading barely above $2,200. However, this 40% drop is not as bad as it sounds.
ETH has shown remarkable resilience given that it has not lost value against BTC, with the ETH/BTC pair trading practically in a tight range since April. Although he rejected a key resistance level of 0.075, his price action paints a bullish picture for ETH, which will likely rebound faster once the market regains bullish sentiment.
In terms of dollar value, while ETH has lost an important support level near the $2,400 level and also a trendline of long-term support, it still has a key level at $2,160 ahead. which should further curb the decline.
After that, ETH will again face $2,400 and the psychological level of $2,500. This should line up nicely with BTC at $33,300 – which is a relatively modest target for a relief rally for the biggest cryptocurrency, should it come to pass.
Support: $2,200, $2,160
Resistance: $2,380, $2,500
(The opinions and recommendations given in this section are those of the analysts and do not represent those of ETMarkets.com. Please consult your financial advisor before taking a position in any assets mentioned.)