Bitcoin leads consolidation among VDAs
By Laxmikant Khanvilkar
The virtual digital assets (VDA) continue to consolidate further, the move started over the weekend, as the recent rally prompted profit taking while the regulators offered little respite in the U.S. that includes rejecting Coinbase’ request for separate regulatory framework for the industry.
As a result, Bitcoin (BTC), the largest cryptocurrency by market capitalisation, slumped towards $41,000 mark. It was recently trading at $41,351, down 1.9%. Ether (ETH), the second largest cryptocurrency, was changing hands at $2,192, losing 1.6% in the same period. The token continues to outperform BTC and is benefiting from from the growing side chain activity.
Bitcoin, on the other hand, is witnessing a moderate sell off after prices have reached 20-month high recently. It settled last week more than 5% lower.
It must be remembered that analyst at JP Morgan have advised for caution as they believe the regulatory approval for spot BTC ETF in the near term to trigger buy-the-rumor/sell-the-fact effect.
Broader markets too stayed sluggish tracking their peers. Large-cap tokens of Avalanche (AVAX), Binance, XRP, Dogecoin were sitting in losses.
Apparently, the global crypto market cap decreased by 1.9% to $1.57 trillion in the last 24 hours. However, the total crypto market volume grew 2.6% to $48.1 billion. Total volume in DeFi is currently $6.5 billion, and all stablecoins are $42.7 billion, representing 13.6% and 88.8%, respectively, of the total crypto market 24-hour volume. Bitcoin’s dominance is currently 51.55%, down 0.08% over the day.
The IC15 index, the barometer of the top fifteen tokens, dropped 1.9% to 52,564.
Meanwhile, the Coinbase’s petition to the Securities and Exchange Commission (SEC) to prod it toward a system of tailored rules for digital assets was rejected by the regulator on Friday.
That piece of information gave rise to uncertainty in the market and, hence, led the price downfall.
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