Crypto Market Faces Continued Slump
The cryptocurrency market experienced a sluggish weekend, with minimal movement across major digital assets. As of Monday, February 17, Bitcoin, the leading cryptocurrency, saw a decline of 1.55 percent on international exchanges, trading at approximately $96,019 (around Rs. 83.2 lakh), according to data from CoinMarketCap. A similar trend was evident on Indian exchanges, where Bitcoin was reported at $99,734 (approximately Rs. 86.5 lakh), reflecting a 1.50 percent drop over the past 24 hours. This ongoing downturn raises concerns among investors and analysts about the future trajectory of the market.
Bitcoin’s Struggles and Market Sentiment
Bitcoin’s recent performance has been a focal point for market observers. The cryptocurrency is currently testing the critical support level of $96,200 (approximately Rs. 83.4 lakh). Analysts from CoinSwitch noted that if Bitcoin can maintain this level, it may trigger a small relief rally before any significant movement occurs. However, the overall sentiment remains cautious as the market continues to slide slowly downward.
The decline in Bitcoin’s price has broader implications for the entire cryptocurrency market. As the leading digital asset, Bitcoin often sets the tone for other cryptocurrencies. When Bitcoin struggles, it typically leads to a ripple effect, causing other cryptocurrencies to follow suit. This interconnectedness is evident in the performance of Ether and various altcoins, which have also seen declines in their value.
Investors are closely monitoring Bitcoin’s price action, as it could dictate the market’s direction in the coming days. The uncertainty surrounding Bitcoin’s stability has left many traders hesitant, contributing to the overall sluggishness in the market.
Ether and Altcoins Experience Declines
Ether, the second-largest cryptocurrency by market capitalization, also faced challenges over the weekend. On international exchanges, Ether recorded a price loss of 1.15 percent, trading at around $2,666 (approximately Rs. 2.31 lakh). Indian exchanges reflected a similar trend, with Ether’s value dipping by 1.30 percent to trade at $2,664 (approximately Rs. 2.31 lakh) on Monday.
The downturn in Ether’s price is part of a broader trend affecting many altcoins. Major cryptocurrencies such as Ripple, Binance Coin, Solana, Dogecoin, and Chainlink all reported losses. Other altcoins, including Stellar, Avalanche, Litecoin, Shiba Inu, and Leo, also experienced declines over the past 24 hours.
The overall cryptocurrency market capitalization fell by 1.44 percent, bringing the total valuation to $3.19 trillion (approximately Rs. 2,76,65,828 crore). This decline highlights the challenges faced by the market as a whole, with many investors feeling the impact of the downturn across their portfolios.
Despite the negative trends, some stablecoins, like Tether and USD Coin, maintained their 1:1 price ratio with the US dollar, indicating a degree of stability amidst the volatility.
Market Developments and Regulatory Challenges
The cryptocurrency market is currently navigating a series of developments that contribute to its volatility. Recently, Grayscale and the New York Stock Exchange (NYSE) have made moves to file for the first US Cardano ETF with the Securities and Exchange Commission (SEC). This potential listing could have significant implications for the market, as it may attract institutional investment and increase legitimacy for Cardano.
In Argentina, legal issues have emerged as lawyers filed fraud charges against President Javier Milei related to the LIBRA memecoin. This situation adds to the uncertainty surrounding cryptocurrencies in the region and raises questions about regulatory oversight.
Additionally, in India, authorities seized cryptocurrency worth nearly $190 million (approximately Rs. 1,647 crore) linked to the infamous BitConnect scam, which defrauded thousands of investors across multiple countries in 2018. These developments illustrate the ongoing challenges faced by the cryptocurrency market, as regulatory scrutiny and legal issues continue to loom large.
The combination of these factors has contributed to the lack of bullish momentum over the weekend, leaving many investors wary of potential risks in the market.
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