With the exception of Bitcoin and dollar-pegged stablecoins, the other seven of the top 10 digital tokens were trading lower as of 8:30 a.m. IST. The gains in Bitcoin were limited. Solana was down 3 percent.
The global crypto Market capitalization dropped by almost one percent to $ 1.96 trillion compared to the previous day. Meanwhile, the total volume of the crypto market increased about 44 percent to $ 102.63 billion.
Bitcoin had broken above the $ 40,000 levels on Monday, before quickly recovering. However, derivative data shows that traders lack confidence and the crypto winter is likely to last longer.
What is cooked in India?
Policy advisers and legal experts say that most countries cannot formulate policy on virtual currencies as there are no precedents other than bans, which have been largely ineffective.
Crypto's growing popularity has drawn the attention of lawmakers as it could undermine state oversight of monetary policy, capital flows, and illicit activities if left unchecked.
Global updates
Investor confidence appears to be affected after the December session of the Federal Open Market Committee of the US Federal Reserve.
The monetary policy authority showed its commitment to reducing its balance sheet and raising interest rates in 2022. Fed Chairman Jerome Powell is scheduled to testify before the US Congress today.
El Salvador's President Nayib Bukele stated that officials will be able to use geothermal energy from one of the country's dormant volcanoes to power their Bitcoin City project.
expert opinion
Edul Patel, CEO and co-founder of Mudrex, said that Bitcoin fell below the $ 40,000 mark, but the trend suggests that with the major cryptocurrencies falling, there has been an increase in the supply of stablecoins.
"Many investors are moving towards these stablecoins to protect themselves from volatility. The sharp decline is not only experienced in cryptocurrencies, but also in technology and software stocks," he added.
Giottus Cryptocurrency Exchange Technical View
Ethereum (ETH), the second largest cryptocurrency, had a phenomenal streak in 2021, going from $ 1,000 to $ 5,000 in just a few months. It also instituted major improvements and went deflationary, consolidating its long-term prospects. Here's what you can expect from Ethereum in the short term.
ETH has formed several bearish flags since November, which developed successfully and resulted in a sharp drop from the $ 5,000 territory to close to $ 3,000 today. However, with the daily RSI now almost down and the sales volume drying up, signs of a reversal appear imminent. The ETH / BTC ratio also reached a major support line at the higher time frames (at 0.073), indicating that Ethereum may outperform the largest cryptocurrency on the market in the short term.
Currently, ETH should address the high time frame resistance at $ 3,370, followed by one at $ 3,655. In the shorter time frame, even investing $ 3,130 should generate optimism. On the downside, ETH has already claimed support at the $ 3,000 psychological level. Therefore, confidence in a bullish move remains high.
Main levels:
Support: $ 2,908, $ 3,000
Endurance: $ 3,130, $ 3,370, $ 3,655
