Volatility of crypto markets has decreased recently, but analysts anticipate the prices to remain rangebound in the next few sessions. Long-term investors are buying the leading token and several altcoins are at lower levels, while traders are booking profits.
Coinbase Global launched a tie-up with Apple and Alphabet Inc’s Google that will allow users to add cards from their accounts to the payment apps run by the two tech giants. The Coinbase card added to the wallets can be used to buy everyday goods with digital currencies. The company said it will automatically convert all cryptocurrencies to US Dollars.
At the domestic front, top banks were still reluctant to let cryptocurrency exchanges and traders open accounts, despite the Reserve Bank of India clearing the air that payment services cannot be denied on the basis of an earlier regulatory ban. Several banks have told customers to refrain from using bank accounts to buy cryptos.
Leading institutions such as SBI, HDFC Bank, Axis Bank and ICICI Bank have told various crypto exchanges that services related to crypto trades are unlikely to be resumed immediately. Some exchanges, however, are hopeful that smaller banks may step in to do the business with them.
Internet and Mobile Association of India (IAMAI) has welcomed the RBI’s advice barring banks from referring to its 2018 circular. Also, IAMAI’s Blockchain and Crypto Assets Council said it has set up a self-regulatory code of conduct that will see all crypto exchange members voluntarily comply with KYC, tax and other norms.
“The crypto market seems to be in a state of consolidation. Although the low volatility could be a good sign, the low trading volume in Bitcoin over the past two days suggests that traders are being cautious. This consolidation was expected after a period of euphoria.,” said Edul Patel, CEO and Co-founder, Mudrex.
Analysts advise investors to remain cautious despite the belief that the market is likely to ride an upward trend over the next few days, and potentially weeks.
Crypto prices as of 09.30 hours IST (Source: coinmarketcap.com)
Bitcoin: $36,571.43, down 0.22%
Ethereum: $2,629.98, down 0.15%
Tether: $1.00, down 0.04%
Cardano: $1.76, up 3.41%
Binance Coin: $359.49, up 4.32%
Dogecoin: $0.3773, up 15.37%
XRP: $1.01, down 2.11%
USD Coin: $1, down 0.02%
Polkadot: $23.71, up 5.36%
Uniswap: $27.13, down 1.12%
ZebPay Trade Desk’s Tech View
The leading assets by market capitalization as well several altcoins seem to have started a relief rally and most of them have been on an uptrend the past week. While BTC and ETH saw a massive drop in the third week of May, both falling by 50%, leading altcoins namely UNI, XRP, BNB, and BCH also witnessed similar patterns.
This trend suggests that traders have started to buy at these lower levels, helping recovery set in. The decline has had a dual impact on the crypto community, with long-term investors citing this fall as a buying opportunity. On the other hand, short-term traders are using this opportunity to exit their positions out of fear that markets will go down further.
Institutional investors have used this correction to add BTC to their portfolios as BTC acts as a good hedge against inflation and dominates the crypto marketplace. Hence, a fall below $30,000 looks rather unlikely. This does not mean that a rapid recovery will set in, but it does suggest that the asset has strong fundamental metrics. We anticipate that prices are likely to remain fairly rangebound over the next few days. As BTC typically defines the market trend and altcoins more often than not follow the trend with a slight delay, we anticipate major altcoins to also behave similarly.
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 stock/s mentioned.)