Cryptocurrency Market Faces Price Correction
The cryptocurrency market is currently experiencing a price correction, according to experts. On December 11, Bitcoin (BTC) saw a modest gain of 0.85% on global exchanges. At that time, Bitcoin was trading at approximately $97,520 (around ₹82.7 lakh) on foreign platforms, as reported by CoinMarketCap. In India, Bitcoin’s price also rose by 0.60%, trading at about $97,427 (roughly ₹82.6 lakh) on exchanges like CoinSwitch and Giottus. This fluctuation in prices reflects the ongoing volatility in the cryptocurrency market, which has been influenced by various factors, including institutional interest and market sentiment.
Institutional Interest Drives Market Activity
The cryptocurrency market has seen significant developments recently, particularly in terms of investment inflows. According to Shivam Thakral, CEO of BuyUcoin, there has been a record-breaking inflow of $3.85 billion (approximately ₹32,675 crore) into crypto investment products. This brings the total for the year to an impressive $41 billion (around ₹3,47,934 crore). The surge in investment is primarily driven by institutional interest, especially in Bitcoin and Ethereum.
This institutional interest is crucial as it indicates a growing acceptance of cryptocurrencies as a legitimate asset class. As more institutions invest in cryptocurrencies, it could lead to increased stability in the market. However, the market remains susceptible to corrections, as seen in recent price movements. The ongoing interest from institutional investors may help mitigate some of the volatility, but it does not eliminate the risks associated with cryptocurrency trading.
Ethereum Faces Resistance
Ethereum (ETH) has also been part of the recent market dynamics, reflecting minor losses of around 1% on both national and international exchanges. At the time of writing, Ethereum was trading at $3,655 (approximately ₹3.10 lakh) on global platforms, while on Indian exchanges, it was priced similarly at $3,664.
The price of Ethereum faced significant resistance at $4,094 (around ₹3.47 lakh) on December 6. Sellers aggressively defended this level, indicating strong bearish resistance. As a result, Ethereum’s price is now at risk of retreating towards the 20-day Exponential Moving Average (EMA), a critical support zone in the short term. A sustained move below this level could signal a shift in momentum, potentially leading to further declines. Traders and investors are closely monitoring these levels to gauge Ethereum’s future performance.
Overall Market Trends and Memecoins
The overall cryptocurrency market cap saw a slight increase of 0.50% in the last 24 hours, reaching approximately $3.46 trillion (around ₹2,93,58,856 crore). While some cryptocurrencies like Tether, Ripple, Solana, USD Coin, and Cardano recorded minor profits, others like Binance Coin, Dogecoin, and Chainlink faced losses.
Memecoins, in particular, have turned bearish as selling pressure mounted, erasing earlier gains. The memecoin sector has plunged to three-week lows, with a market capitalization of $119.6 billion (around ₹10,14,800 crore) as of December 10. This decline puts Bitcoin in a relatively better position, as the memecoins become increasingly speculative. Avinash Shekhar, Co-Founder and CEO of Pi42, noted that the contrasting performance between Bitcoin and memecoins highlights the ongoing volatility and speculative nature of the cryptocurrency market.
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