In cryptocurrencies, Bitcoin prices today slipped over 4% to $42,421. The world’s largest cryptocurrency by market capitalization is up 45% this year (year-to-date), and much below its record of near $65,000 it had hit in April.
Ether, the coin linked to ethereum blockchain and the second largest crypto, also plunged as it was down nearly 7% to $2,956.8. Cardano prices skid 4% to $2.16 whereas dogecoin tumbled 3% to $0.20. The performance of other digital tokens including XRP, Litecoin, Stellar, Solana also declined over the last 24 hours.
“Ethereum has been in a downward trend since the beginning of September this year. We expect a trend breakout from the top of the pattern as ETH creates the distinctive cup handle and handle pattern taking into account the longer period. We could see ETH gaining support at $ 2,600 before it bounced back and started its upward reversal cycle,” said Siddharth Menon, COO of WazirX. He added that the total cryptocurrency market is just below $ 2 trillion. Over the past few weeks, volumes have been fairly stable.
Cryptocurrency investment products and funds posted inflows for a sixth consecutive week as of September 24, data from digital asset manager CoinShares. Inflows to the sector hit $95 million last week, led by investments in bitcoin of $50.2 million. Over the last six weeks, crypto inflows amounted to $320 million. For 2021, inflows were $6 billion.
Bitcoin bore the brunt of negative investor sentiment of the last two quarters. Last week’s inflows were just the fourth week of inflows out of the last 17. So far this year, inflows into bitcoin remained robust at $4.3 billion.
Last week, China’s regulators intensified a crackdown on cryptocurrencies with a blanket ban on all crypto transactions and mining, hitting bitcoin and other major coins and pressuring crypto- and blockchain-related stocks.
One of the world’s largest cryptocurrency exchanges Binance and Huobi said they would close all user accounts in mainland China by the end of the year, days after the country’s central bank declared all crypto-related transactions illegal.
(With inputs from agencies)
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