Barring Bitcoin and the dollar-pegged USD Coin, all other nine out of top 10 digital tokens were trading higher at 8.30 am IST. BNB rose 7 per cent and Polkadot zoomed 6 per cent, whereas XRP and Cardano added 4 per cent each.
The global crypto market cap was up by almost 3 per cent to $2.01 trillion mark compared to the last day. However, the total crypto market volume dropped over 13 per cent to $88.53 billion.
Bitcoin led a broad crypto recovery ahead of the US CPI release. Bitcoin and the broader crypto market have behaved strongly like a risk asset recently.
What’s cooking in India?
The government has sought opinion from senior tax advisors on whether the income earned from trading or investing in cryptocurrencies could be treated as business income as against capital gains from this year onwards, ET reported.
The move could substantially increase the tax burden of crypto investors. The government is looking to fine-tune the definition of income and gains specifically for crypto assets in the upcoming budget.
Expert’s take
Buyers rushed in to take advantage of Bitcoin’s drop below $39,650, but there are indicators that the market-wide slump isn’t done yet, said WazirX Trade Desk.
“Bitcoin fell below $40,000 for the first time since September 2021. The crypto markets weren’t the only ones to see heavy selling as traders decided to decrease risk by piling into the 10-year Treasury yield,” it added.
Quant researcher Benjamin Cowen gave investors some comfort when he claimed that levels of ‘severe fear’ on the Crypto Fear & Greed Index had only happened four times since 2018, with positive reversals.
“This means that the bull and bear market have an elastic effect, the more rigorously the market goes down the more aggressively it comes back up giving remarkable returns. We should see a huge correction in the market very soon,” it added further.
Global updates
Major US crypto exchange Coinbase will be giving its employees one week off each quarter in 2022 to recharge after ‘long days and long weeks’ of intense work.
Employees from Microsoft and Apple are jumping ship to join Meta Platforms as the company sets its sights on creating the Metaverse.
Brokerage firm eToro introduced MetaverseLife, a new smart portfolio covering stocks and crypto-assets from within the growing metaverse industry. It stated that its goal is to offer a wide range of investments made for a long-term view.
Tech View from BuyUcoin
Bitcoin was below the $40,000 support level, reaching almost near to its Death Cross. Bulls still hold power and have pushed Bitcoin above $42,000. It is still in a downtrend, below the $45,000 resistance level.
BTC needs a little bit more recovery as RSI is still below 50, indicating that it is oversold. If Bitcoin missteps then a setback can be seen near the $38,000 – $36,000 zone.
If bulls try to make an upside move, then the price may soar to around the $45000 level.
