The cryptocurrency turns slow with its trading today

The cryptocurrency turns slow with its trading today

The cryptocurrency turns slow with its trading today. The cryptocurrency market was trading lower on Friday, thanks to the sharp selloff in the US markets over inflation concerns and the hawkish tone of the US Fed.

Barring the dollar-pegged USD Coin and Avalanche, all eight out of the top-10 digital tokens were trading lower on Friday. Shina Inu, Solana, and Terra dropped 6 percent each.

The global crypto market cap dropped more than 3 percent to $2.01 trillion mark. On the other hand, the total crypto market volume zoomed 50 percent to $114.22 billion.

Expert Take
Bitcoin dipped in the past 24 hours. The downward trend could be related to the fall of US stocks following hawkish remarks by the Federal Reserve. BTC is close to meeting the overbought level, said Edul Patel, CEO and Co-founder of Mudrex.

“BTC’s dominance stands at 41 percent, and resistance holds at $46,000. The second-largest cryptocurrency, Ethereum, is currently trading at $3,000. According to the market cap, the top cryptos are also running in the red over the past day,” he added.

Global updates

  • Coinbase Global has removed ‘how to buy’ instructions for at least three crypto tokens which have been the subject of ‘rug pull’ warnings that investors may lose their money, saying on Thursday it plans to improve safeguards.
  • In other news, the total value of crypto-related mergers and acquisitions (M&A) rose to $55 billion in 2021 versus $1.1 billion a year earlier, according to a report from PricewaterhouseCoopers (PwC).
  • Also, Fitch, the global rating agency, has downgraded El Salvador’s long-term foreign-currency issuer default rating (IDR) to CCC from B- weeks before the country starts issuing its bitcoin bond.

For most crypto investors out there, the introduction of a 30% tax rate is welcome, even if it is higher than other asset classes like stocks or bonds. After record uncertainty about the fate of virtual currencies, the mere fact that cryptocurrencies are here to stay is a relief to many.

The Budget affirms India’s conviction to forge a progressive and technology-driven future. Although this is not the equivalent of giving cryptocurrencies the status of a legal tender, the acceptance of cryptocurrencies is in itself a big move. And leading crypto platforms like CoinSwitch Kuber are more than welcoming of this accommodative stance.

The government has surely come a long way in its stance towards crypto in the last year. Many hope that this positive outlook towards cryptocurrencies will continue to mean good things for cryptocurrencies and their various applications.

Meanwhile, the global cryptocurrency market capitalization today remained above $2 trillion, as per CoinGecko, even as it was down 3% at $2.06 trillion, dragged by a fall in crypto prices today.

The crypto market marked the third week of inflows totaling $133 million last week, according to a report from digital asset manager CoinShares. Bitcoin led all inflows, with $71 million, the largest since early December and the third straight week of inflows, with a total of $108 million. Ether posted net outflows of $8.5 million in the week ended February 4, its 9th straight week of outflows, totaling $280 million.