Crypto prices have, over the last weeks, been unpredictable with irregular fluctuations. This trend has been influenced by the collapse of TerraUSD algorithmic stablecoin, which influenced a massive sell-off of cryptocurrencies. The most popular crypto, Bitcoin, has seen a 2% plunge and is currently selling at $29,396. Bitcoin has suffered the most, losing up to 36% in value this year despite peaking at $69,000towards the end of last year.
Popular trading sites such as WazirX stated that the 4-hourly trend for BTC has been moving in a triangle. Despite the $24,000 support the cryptocurrency is receiving, investors are still exhibiting extreme fear. According to WazirX’s Trade Desk, these sentiments and trends are likely to change with an increase in buying momentum and trend reversal.
Another industry player, Edul Patel, stated that despite the market uncertainties, the cryptocurrency still managed to stay above its support to trade at $27,000. This value is considered the weakest since the start of the year. He also mentioned that it’s too early to celebrate since the value may break below the current price range o the next few weeks.
Other cryptocurrencies were not spared, with the second most popular coin, Ether, plunging by 2% to trade at $1987. Dogecoin also took a hit to trade lower than $0.08, while Shiba Inu traded at $0.000012. Today’s crypto market saw a massive drop in crypto prices with digital tokens such as Stellar, Solana, Cardano, XRP, Avalanche, Terra (Luna), Polkadot, and Litecoin. Each of these currencies has experienced a price cut in the last 24 hours. However, only Uniswap and Tron gained in the last trading period.
As mentioned before, the plunge has been influenced by a massive sell-off among investors, with players terming it as a risk asset. The situation is further worsened by the increasing US inflation, which has caused fears over the economic impact of aggressive central bank intervention. The market volatility in cryptocurrencies that started a little over a month ago has cleared billions of dollars in market value. Investors should expect more uncertainties in the market due to the ever-changing market trends as well as the entry of regulatory bodies.
Dil Bole Oberoi
