Crypto m-cap struggles to regain $1 trillion mark. Will the woes continue to haunt investors?
But after falling below $20,000, its key support and psychological level, Bitcoin flexed its muscles to rise more than 3 percent to regain the $20,500 mark.
Ethereum rallied around 10 percent to surge past the $1,600 mark and recover all of its weekly losses. The second largest crypto token has been in the news over the blockchain’s ambitious software upgrade – “The Merge.”
The green days must be taken with a grain of salt, warned Sathvik Vishwanath, Co-Founder and CEO, Unocoin. “The next couple of days are expected to be slang higher.”
Among other altcoins, Avalanche, Flow, Cosmos and Lido Dao, Compound rose in the range of 11-15 percent during the early hours in Asia.
Despite a 5 percent increase, the total market capitalization of the crypto space remains below $1 trillion, a sign of concern for traders. However, a 20 percent increase in volumes helped lift sentiment.
However, market participants believe that there may be a partial recovery in the crypto space, but overall sentiments remain muted and investors should be cautious while picking tokens on dips.
Cryptocurrencies appeared to be regaining some lost ground, with a strong surge in major crypto tokens and altcoins outperforming them, Prashant Kumar, CEO and Founder, weTrade told ETmarkets.com.
“While there may have been a temporary increase, global economic factors continue to play a role and the next month could see continued bearish sentiment,” he added.
The crypto market has been under heavy selling pressure due to various factors, which have contributed to the difficulties of the 24×7 market, without geographical boundaries.
Prolonged crypto winter, project failures, rising inflation, interest rate hikes, regulatory actions and the geopolitical crisis have hit the digital asset class hard.
Edul Patel, CEO and co-founder, Mudrex said that it may take some time for Bitcoin to come back as it has not gathered the strength to make an upward move.
Market players believe that the crypto space is likely to remain under pressure in the short term, thanks to the hawkish comments from the US Fed chief, who hinted at another interest rate hike in September.
The crypto market is up, lifted by heavyweights like Bitcoin and Ethereum, said Shivam Thakral, CEO, BuyUcoin. “The market has digested the hawkish remarks from the Fed chief to tackle rising inflation concerns.”
Investors continue to have faith in the potential of crypto assets in times of high inflation, and the market is expected to maintain its momentum as more smart money is expected to enter the crypto market in the coming weeks, he added.
“Character cannot be developed simply and quietly. Only through experience of trial and suffering can the soul be strengthened, ambition inspired and success achieved.” – Helen Keller
