Barring Ether and Solana, seven out of the top-10 cryptocurrencies were trading lower at 9.30 hours IST. Ethereum was marginally higher, whereas Solana rallied as much as 22 per cent.
The global crypto market cap inched higher up to a per cent to $2.09 trillion mark compared to the last day. However, the total crypto market volume tanked over 25 per cent to $179.57 billion.
Bitcoin, the world’s most valuable cryptocurrency, slid to below $45,000 on Tuesday from a near four-month high of about $52,000, hours after it debuted as legal tender in El Salvador, the first country to do so.
Most cryptos declined yesterday. The fall seems to have happened due to a mass selloff seen in the marketplace, and by the comment released by the IMF, which set off panic amongst holders, said ZebPay Trade Desk.
“Surprisingly, the dip came right after El Salvador put BTC into practice as a legal tender. However, since then we have seen volumes pump up, as at lower levels these assets seem to look attractive. This is a good sign, as it re-instills the fundamental belief in the ecosystem,” it added.
The US Securities and Exchange Commission has told Coinbase Global Inc that it plans to sue the cryptocurrency exchange if it goes ahead with plans to launch a programme allowing users to earn interest by lending digital assets, Coinbase said.
The central banks of Honduras and Guatemala are eying digital currencies, officials said on Wednesday, following El Salvador’s adoption of Bitcoin as legal currency.
Bitcoin is now a legal tender in a country with a population of 6.5 million people. This move brings 6.5 million more bitcoiners into the foray as each citizen is entitled to $30 worth of Bitcoin in government’s Bitcoin wallet application, said Siddharth Menon, COO WazirX.
“A lot of countries are keeping a close eye on the scheme of things, watching and analyzing the potential of this recent adoption. Some of these countries include Panama and Cuba who are showing keen inclination toward Bitcoin,” he added.
Salvadoran President Nayib Bukele stepped in on Wednesday to manage the fraught roll-out of a payments app that underpins the nation’s adoption of Bitcoin as legal tender, and called on users to report any problems on his Twitter feed.
Tech View by Giottus Cryptocurrency Exchange
Algorand (ALGO) recovered from this week’s market crash and climbed 50% today despite the market being in red. This move comes after El Salvador announced that it will use Algorand to build its blockchain ecosystem.
Launched in June 2019, Algorand is a permission-less and open-source blockchain network on which a developer can build their own blockchain-based protocol. Algorand is a decentralized network built to solve the current blockchain’s scaling, security, and transaction speed problems simultaneously.
After breaking out of the accumulation stage, ALGO is trying to consolidate above the $1.9 resistance. A confirmation above the resistance on a higher time frame will result in further bullish movements.
On the longer frame charts, ALGO is making a cup and handle (C&H) pattern, which is also bullish. The neckline of C&H is $2.05. It is highly possible that ALGO might test its all-time high of $3.44 soon. ALGO currently enjoys strong support at $1.54.
Support: $1.69, $1.63, $1.54
Resistance: $1.71, $1.85, $2.04
Time is in UTC and the daily time frame is 12:00 AM – 12:00 PM UTC
(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.)