2021-07-17 07:22:30

Bitcoin Rebounds from $31,000 Support; Market Slides Further

All top 20 cryptocurrencies excluding dollar-pegged stablecoins remain in red; Ethereum trades below $1,900 levels

Bitcoin (BTC) bounced off the $31,000 critical support level among speculations that Bank of America is greenlighting BTC futures trading for its clients. BTC ended at $31,350, a 1.5 per cent drop in the 24-hour period ending 10 am IST. BTC must maintain its price above the $31,000 support level over the weekend or risk declining to $29,000 levels.

The global crypto market underscored its lack of bullish sentiment with a continued decline on Friday, losing 3 percent to close at $1.28T. This was accompanied by a significant 5 per cent drop in overall trade volume.

All top 20 cryptocurrencies, excluding dollar-pegged stablecoins, were in the red today with Polygon (MATIC), Polkadot (DOT), Dogecoin (DOGE) and Stellar (XLM) dropping by more than 8 per cent. Ethereum (ETH) continued to trade below $1,900 levels. BTC dominance, currently at 46.2 per cent share of global market cap, is increasing in a worrying sign for key altcoins. For the seven-day period ending today, BTC is down by 6 per cent while most of the altcoins have witnessed a significant decline. Dogecoin (DOGE), Polkadot (DOT), Uniswap (UNI), Solana (SOL) and Polygon (MATIC) have all lost nearly 20 per cent in this period.

The weekend is not expected to bring any cheers to the market given the increasing strength of US dollar lately though the unlocking of Greyscale Bitcoin Trust shares might give it a minor boost. Intraday trade volume for BTC remains considerably lower than in the weeks before, with the number of coins traded tapered since end-June. BTC’s year to date gains is now less than 10 per cent.

Top Gainers today:

NEM (XEM): 16.1%

Ravencoin (RVN): 15.3%

Basic Attention Token (BAT): 10.7%

Top Losers today:

Axie Infinity (AXS): -23.1%

THORChain (RUNE): -19.4%

Stacks (STX): -19.2%

The analysis includes the top 100 coins only as of 10am IST

Source: CoinMarketCap

Crypto News at a Glance:

  • Bank of America, the second-largest US bank, has approved the trading of Bitcoin futures for some clients, according to a report by Coindesk. Futures allow investors to have an exposure on Bitcoin without holding the currency.
  • Global crypto exchange, Binance, has suspended purchase and trade of tokenized stocks barely three months after enabling them on its platform. In April, Binance introduced stock tokens of companies such as Tesla and Coinbase. The exchange has faced regulatory pressures from multiple governments recently.
  • Malaysia has cracked down on illegal Bitcoin mining rigs in the country. Over 1,000 Bitcoin mining machines worth $1.2 million have been destroyed by the authorities in the country as part of the crackdown.
  • The city of Jackson in Tennessee, US is planning to accept Bitcoin as payments for property tax, mayor Scott Canger announced on Twitter.

DISCLAIMER: Views expressed are the author’s own, and Outlook Money does not necessarily subscribe to them. Outlook Money shall not be responsible for any damage caused to any person/organisation directly or indirectly.

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