New Delhi: Bitcoin and other major crypto tokens eked out minor gains ahead of the US Fed meet outcome but crypto traders remained pessimistic about future price action.
Fears that the Bitcoin can drop below $20,000 mark also kept traders on edge. It is believed that the weakness would continue if the global macroeconomic scenario does not improve.
Barring the dollar-pegged USD Coin and Tron, the majority of the crypto tokens were trading with gains on Wednesday. Solana gained up to 6 per cent, whereas Ethereum rose 5 per cent. BNB was also 3 per cent up.
The global cryptocurrency market cap was trading sharply lower at the $971 billion mark, rising about 3 per cent in the last 24 hours. However, the total cryptocurrency trading volume dropped about 26 per cent to $126 billion.
Prior to the US Fed rate hike decision, most markets were in the red. Many market participants now expect a 75 bps hike, and will likely be listening closely to how the Fed plans to move ahead, said Dashan Bathija, CEO & co-founder, Vauld.
“Data from Glassnode also shows that exchange inflow increased over the past two days; once again this indicates fearful market sentiment as most investors are selling and exiting the markets,” he added.
Coinbase Global is laying off around 1,100 employees as part of a cost-cutting plan, the company said in a filing. Coinbase initially said in May it was paring back its hiring plans and then later said it would rescind new job offers.
Crypto-tracked futures lost over $1 billion in the past 24 hours, weighed down by a weak sentiment for bitcoin and other cryptocurrencies amid a weak global economic outlook, data shows.
The largest altcoin, ether (ETH), is underperforming bitcoin (BTC), just as it did during the downturn in crypto markets in 2018, Morgan Stanley said in a report.
The beleaguered crypto lending platform Celsius’s CEL token jumped eight-fold to an intraday high of $2.57 from 30 cents, according to data from FTX.
The rout in the price of bitcoin (BTC) has led to renewed questions about whether MicroStrategy (MSTR) may have to part with or pledge as collateral more of its 129,218 coin stack.
Tech view by BuyUcoin cryptocurrency exchange
Ether falls below the $1,200 mark. Ether movement is generally coupled with Bitcoin as it has dropped almost 75 per cent from it’s all-time high in November last year. The financial markets are facing heavy liquidations as investors are exercising their stop loss option.
The crypto lending platform Celsius blocked all withdrawals following the market crash which has triggered a broader sell-off across crypto assets.
The expectation of a higher interest rate from the Fed is also affecting the market sentiment as a result of which Ether is under tremendous pressure. If the current trend continues, Ether could find a lower wafer at this support level at the $1,000 mark.
The upward trend in Ether prices may not be possible till we hear some positive news from the next consumer price index and relaxation of monetary policy by the Fed.
(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.)