New Delhi: The cryptocurrency market was trading lower on Friday as investors were on their toes amid weakness in riskier asset classes and the US Federal Reserve’s hawkish views.
Barring Solana, nine out of the top 10 digital tokens were trading lower at 9.30 IST. Binance Coin tanked over 8 per cent, whereas Cardano and Polkadot shed 4 per cent each.
The global crypto market cap declined about 2 per cent, to $2.22 trillion, from the previous day. The total crypto market volume plunged more than 23 per cent to $89.12 billion.
“Volatility across the cryptocurrency market continued for yet another day. After a good pump across altcoins, we saw profit booking creeping in,” said Edul Patel, CEO and Co-founder of Mudrex. The coming 24 hours would be crucial.
What’s cooking in India?
India is contemplating bringing a bill in Parliament to deal with the challenges posed by cryptocurrencies. Currently, there are no particular regulations or any ban on use of cryptocurrencies in the country. However, a rise in interest in cryptos and digital assets and the volatility in the market have raised concerns.
Expert’s take
“While there has been a brief rally following the Federal Open Market Committee’s announcement of its plans and economic outlook for 2022, last night’s lackluster market performance was indication that we are still not out of a potential bear market,” said the research team of CoinDCX.
The gradual removal of the opulent stimulus programmes, coupled with the realities of a global economic slowdown, seems to be a major concern for investors and traders. Many are choosing to shore up their holdings in stablecoins and wait for a more favorable time to enter the market, it added.
Global updates
International Monetary Fund (IMF) Chief Economist Gita Gopinath had made a strong case for regulating cryptocurrencies, saying it would always be a challenge to ban them as they operate from offshore exchanges.
Cryptocurrency exchanges are set to see consolidation amid concerns and confusion over government attempts to regulate crypto assets. Some exchanges have begun exploratory talks with other Indian exchanges and foreign players.
Gopinath also suggested a global policy and co-ordinated action for regulating cryptocurrencies.
NFT Update
MG Motor India has become the first auto brand in the country to jump on the digital asset bandwagon. The maker of the Hector and Gloster SUVs plans to launch its own collection of NFTs this month.
BollyCoin has announced plans to launch its NFT collection with Salman Khan-starrer Dabangg. The platform is planning to make its NFT marketplace live on December 30.
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