A few players might see it as a short term rebound as they are cautious about any long-term bounce in the digital token market amid ongoing inflationary concerns and recession worries.
Barring Cardano, all other major crypto tokens were trading with mild cuts. However, the losses were capped in the majority of names. Among the worst performers, Avalanche dropped 10 per cent, whereas Solana and Shiba Inu fell up to 6 per cent.
The global cryptocurrency market-cap was trading marginally lower at the $1.31 trillion mark, dropping about a per cent in the last 24 hours. However, the total cryptocurrency trading volume fell about 5 per cent to $86.43 billion.
Expert take
Darshan Bathija, CEO and Co-Founder of Vauld said that bitcoin holding above the $31,000 level is a positive sign. After 9 consecutive weeks of losses, and oversold conditions, investors seem to be returning, he said.
After the launch of the new LUNA token, the price fell by 80 per cent within hours of being listed on small exchanges. This is because as soon as the tokens were airdropped to the people, they sold them off to recover their losses, said WazirX Trade Desk.
“The biggest listing happened on 31st May in Binance and we’ll see what is the market sentiment,” it added.
Global updates
- Russia’s central bank is open to allowing the use of cryptocurrency for international payments, a senior bank official said, in a sign of a possible relaxation of its opposition to digital currencies.
- The market for collectible sneakers has skyrocketed in recent years. And until recently, so had the market for NFTs, or non-fungible tokens, which function as digital certificates of ownership for works of art as well as tattoo designs and virtual real estate.
- The Monetary Authority of Singapore, the republic’s central bank, is starting a pilot program alongside financial heavyweights DBS Bank, JPMorgan and Marketnode to explore use cases of digital assets in tokenization and decentralized finance.
- Crypto companies raised a record $30 billion of venture capital last year, and the number of deals in the sector remains elevated despite the recent fall in cryptocurrency markets, Morgan Stanley said in a report.
- Terra’s newly minted luna token rallied by 40 per cent on Tuesday after the token was listed on cryptocurrency exchange Binance.
Tech view by BuyUcoin cryptocurrency exchange
Bitcoin, the world’s oldest cryptocurrency is showing strong signs of recovery after falling below $29,000 in the middle of last month. The crypto market has witnessed a record inflow of funds and the 24-hour trading volume of $96.68 billion underlines this statement.
The bulls have entered the market again which may result in a rally across crypto assets. It will be a buyer-dominated market for the next few weeks which shows a higher risk appetite among investors. Bitcoin is expected to reach its fair market value of $40,000 if the current trend continues but could face resistance at $42,000.
(Views and recommendations given in this section are the analysts’ own and do not represent those of ETMarkets.com. Please consult your financial adviser before taking any position in the asset/s mentioned.)
