Bitcoin stepped into the month of August, buried in a loss-spell. The most expensive cryptocurrency slipped by 1.87 percent on Tuesday to trade at the price point of $28,879 (roughly Rs. 23.7 lakh). In the last 24 hours, the value of BTC has recorded a decline of $546 (roughly Rs. 44,940). Industry experts believe that Bitcoin’s lacklustre performance is likely due to a lack of major macroeconomic news, which has made it difficult for investors to make directional bets.
“The crypto market has undergone some selling pressure in the last 24 hours. From a purely technical analysis lens, not a lot of downside remains in BTC if the bullish trend line were to be respected and we could see a reversal from the trend line support which sits at around $27,000 (roughly Rs. 22 lakh) for the day,” Shubham Hudda, Senior Manager, CoinSwitch Markets Desk, told Gadgets 360.
A cluster of altcoins dipped in values after finding themselves impacted by loss-stricken Bitcoin and Ether on Tuesday.
The overall valuation of the crypto sector dipped by 1.80 percent in the last 24 hours, to currently sit unchanged since yesterday at $1.18 trillion (roughly Rs. 97,11,105 crore), as per CoinMarketCap.
Contrastingly, the crypto fear and greed index has climbed three points since yesterday and continues to remain in the neutral zone with a score of 53/100.
“BTC continues to make new lows in the daily chart as it traded at its lowest price in 40 days in the early trading hours for the day. The majority of the market followed with the expected dip in CRV (-12.84 percent) due to the exploit of its DeFi pool which happened on July 30. Being a well-known protocol in the space, traders have extended their sell-off in other famous DeFi projects as well namely, AAVE (-12.5 percent) and SNX (-8.5 percent),” Hudda noted.
Experts foresee more volatile days coming for the crypto sector in the near future.
“The long-term holders (LTHs) of Bitcoin are showing no signs of selling with the number of non-zero addresses for Bitcoin surging to an all-time high, with an impressive 47 million having a balance of at least one Satoshi —the smallest unit of Bitcoin. This week, unemployment data and non-farm payroll will form the focus for the sentiment in the US, giving early signals for further interest rate hikes to combat inflation,” the CoinDCX team told Gadgets 360.
In other news, China, in its bid to strengthen the application of blockchain in the real economy, has announced the development of a blockchain infrastructure in Shanghai by 2025. The plan is set to introduce rapid on-chain and cross-chain deployment capabilities.