New Delhi: The cryptocurrency market was trading largely in green on Wednesday ahead of the much awaited US Fed meeting seeking signals for tapering and rate hikes. Investors picked up tokens at lower prices.
Barring Polkadot and Tether, as many as eight out of the top 10 digital tokens were trading lower at 9.30 hours IST. Dogecoin zoomed 16 per cent following Musk’s support.
The global crypto market cap gained about 3 per cent to $2.19 trillion mark compared to the last day. However, the total crypto market volume rallied more than 7 per cent to $103.68 trillion.
“Last night saw relief rallies across the crypto market as dip buyers returned. As traders await FOMC’s policy statement this week, we can expect the following few sessions to remain choppy and range-bound,” said CoinDCX Research Team.
It is highly probable that a rate hike and accelerated tapering are on the near horizon, although these seem to have already been priced in with the recent sell-offs, it added.
What’s cooking in India?
The government is considering changes to the proposed cryptocurrency framework, a senior government official said. This means that it may not be introduced in the winter session of parliament as planned.
The issues being debated include the need for wider consultation and seeking comments from the public as well as whether the Central Bank Digital Currency (CBDC) to be introduced by the Reserve Bank of India needs to be a part of this bill or should be dealt with under the RBI Act.
Expert’s Take
“Before the boom of cryptocurrency, Elon Musk was also skeptical about Bitcoin, even though his friends gave him a few Bitcoins back then, he wasn’t keen on having it. But now he is the face of Dogecoin. He has hinted that Tesla will adopt the cryptocurrency as a tender for purchasing its cars,” said WazirX Trade Desk.
“As we can see the tech geniuses who were against cryptocurrency have now come on a neutral or pro stand on cryptocurrency. It took years for them to realize the potential of this market and we hope the rest of the world also realizes that soon enough,” it added.
It is still too early to say with certainty the opportunities that will open up and the new jobs that will exist in the new digital frontier. Always be alert when conducting transactions, especially when it comes to cryptocurrencies.
Global updates
The mercurial technocrat and billionaire Elon Musk ignited Dogecoin as his company Tesla was eyeing to make some merchandise buyable with Doge tokens and see the work in progress over it.
Musk, who was named Time magazine’s ‘Person of the Year for 2021’, said cryptocurrency Dogecoin is better for transactions than Bitcoin.
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