Bitcoin continues to suffer losses, most cryptocurrencies recover
The ongoing turmoil in the Japanese stock market, coupled with geopolitical tensions flaring up in multiple parts of the world, is keeping the crypto sector from posting gains. Bitcoin posted a loss of 3.25 percent on Wednesday, August 7, to trade at $57,261 (roughly Rs. 48 lakh) on international exchanges like CoinMarketCap. Even on Indian exchanges, Bitcoin posted losses. On CoinDCX, for instance, the asset is trading at $61,733 (roughly Rs. 5.18 lakh) after dropping 1.54 percent. Crypto analysts predict that as more whales buy into the drop, the BTC price could see a spike.
“Bitcoin’s dominance has increased significantly and now stands at over 57 percent, a level not seen since 2021. During the market correction earlier this week, Bitcoin whales accumulated nearly 30,000 BTC worth $1.6 billion (approximately Rs. 1,34,294 crore). The crypto market is showing signs of recovery and this momentum is being driven by increased whale activity and substantial institutional inflows,” Vikram Subburaj, CEO of Giottus told Gadgets360.
Ether managed to post gains on Wednesday against Bitcoin, according to Gadgets360’s crypto price tracker. Ether posted a 4.37 percent gain on Wednesday, pushing its trading value to $2,415 (roughly Rs. 2 lakh) on both domestic and international exchanges.
“ETH has been trading in the red for the past seven days in a ‘Lower High Lower Low’ pattern. On August 5, ETH dropped to its lowest price level in eight months, just above $2,100 (approximately Rs. 1.76 lakh). This drop was caused by ETH transfers through jump trading, escalating geopolitical tensions and concerns over the global economy, leading to a broader market correction,” ZebPay trading desk told Gadgets360. “The drop in Ether price was also accompanied by a decline in network activity, with the number of new and active addresses also declining.”
The cryptocurrencies that followed BTC on the losing side of the crypto chart on Wednesday include Binance Coin, USD Coin, Dogecoin Iota, Augur and Circuits of Value.
Meanwhile, several cryptocurrencies lagged behind ETH with gains on Wednesday. These included Tether, Solana, Ripple, Cardano, Tron, Avalanche, Shiba Inu and Polkadot.
As the market is currently volatile, analysts have warned traders.
“The low trading volumes and a bear market indicate cautious investor sentiment. While retail investors sold their BTC holdings during the recent crash, whales accumulated more. The Relative Strength Index (RSI) at 49 suggests that selling pressure may increase soon,” Avinash Shekhar, co-founder and CEO of Pi42, told Gadgets 360.
The total market capitalization of cryptocurrencies stands at $2.02 trillion (approximately Rs. 1,69,54,233 crore) on Wednesday after gaining 2.65 percent in the past 24 hours, showing MintMarketCap.
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