Bitcoin Loses Momentum as Major Altcoins Register Weekly Gains
BTC correction attributed to filling of Bitcoin futures gap on global derivatives exchange CME
The global cryptocurrency market cap continues to hover around $1.43 trillion, registering a marginal decline of 0.6 per cent over the past 24 hours ending at 9 am IST. Total crypto trade volume has increased by 4 per cent today, pointing to continued confidence in the broader market.
Bitcoin (BTC) continues to trade at $34,000 registering a modest 1 per cent drop at the close of day. BTC had lost most of its weekend gains after facing selling pressure near the resistance level of $36,000 during the early hours of July 5. However, buyers stepped in later at the crucial support level of $33,000 to put BTC back in familiar territory. This correction may be attributed to the filling of the Bitcoin futures gap on CME, a global derivatives exchange. From a broader perspective, the prospect of another steep selloff for BTC is weakening as BTC’s exchange supply is hitting a six-month low according to data released by behavior analytics platform Santiment.
Ethereum (ETH) is currently sitting on the June trend line near $2,200 after failing to close above $2,280. ETH has lost more than 3 per cent during the day to close at $2,230, though it is 6 per cent up in the last 7 days, continuing to show strength against BTC’s movement.
The past week has been broadly kinder to altcoins despite the volatility of BTC. Among major altcoins, Uniswap (UNI) and Ethereum Classic (ETC) have had the highest gains of over 18 per cent in the last 7 days. Meanwhile, Dogecoin (DOGE) and Polkadot (DOT) registered a decline of 7 and 3 per cent respectively over the same period. Market dominance of BTC slipped marginally to 44.7 percent over the past 24 hours, indicating the possibility of a stronger altcoin growth once BTC recovers its major dip.
While BTC continues to be in an intermediate downtrend, indications of a market bottom give reasons for investors to be bullish. BTC’s trading volume needs to grow to ensure a bullish breakout.
Top gainers today:
- KuCoin Token (KCS): 42.0%
- Synthetix (SNX): 24.2%
- Aave (AAVE): 15.7%
- XinFin Network (XDC): -8.1%
- Celo (CELO): -5.1%
- FTX Token (FTT): -4.8%
Top losers today:
Analysis includes top 100 coins only as of 9am IST
Crypto news at a glance
- Leading global exchange platform Coinbase is offering incentives of up to $1,000 in cryptocurrencies to prospective employees in India in a move to attract strong talent.
- Blockchain firm StaTwig and India’s Tech Mahindra have partnered to roll out a “VaccineLedger” solution worldwide to tackle supply chain issues with mass vaccination programmes.
- London based Barclays Bank has stopped its UK customers from transferring funds to Binance via credit or debit cards. The Financial Conduct Authority (FCA) had banned Binance Markets Limited from carrying out crypto operations in the UK earlier in June.
- US state Wyoming has granted legal status to a decentralised autonomous organisation (DAO) for the first time in US history. DAOs are member-owned communities without centralised leadership or oversight. In September 2020, Wyoming had granted crypto exchange Kraken with a bank charter, making it the first crypto company to be allowed to operate as a bank in the country.