Throughout this week, both Bitcoin and Ether have continued to trade at a loss. On Friday, January 19, our crypto price tracker reported that Bitcoin’s value dropped by 3.77% to $41,005 (about Rs. 34.09 lakh), marking a recent low. In the last 24 hours, Bitcoin has lost $1,540 (approximately Rs. 1.28 lakh) in value, leading analysts to recognize an unexpected downward trend in the crypto market.
Speaking to Gadgets360, BuyUcoin’s CEO Shivam Thakral commented on the cause of Bitcoin’s selling pressure, emphasizing that regulated ETFs have accumulated a significant amount of Bitcoin, leading to heavy outflows from other Exchange Traded Products. However, he predicts that Bitcoin’s price will rise once this transition cools down and investors are done with profit booking.
Similarly, Ether also registered a value drop of 2.95% on the same day, trading at $2,456 (roughly Rs. 2.04 lakh). Other cryptocurrencies such as Solana, Ripple, Uniswap, Tether, and Cardano have also witnessed losses in the crypto market.
CoinSwitch Ventures’ Investments Lead, Parth Chaturvedi, highlighted that the top 30 cryptos by market cap are currently trading in the red, causing some volatility in Bitcoin’s price. However, he noted that ETF inflows and Assets under Management (AUM) continue to see healthy numbers.
The overall market capitalisation of the crypto sector took a hit of 3.25% in the last 24 hours, resulting in a valuation of $1.62 trillion (about Rs. 1,34,68,056 crore) as per CoinMarketCap.
Despite the downturn, a few cryptocurrencies including Iota, Braintrust, Binance USD, and Dogefi managed to record slight gains on Friday.
CoinMarketCap data has also revealed a significant DeFi development, indicating that dYdX recently surpassed Uniswap to become the largest DEX by daily trading volume.
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In conclusion, the recent price dips in Bitcoin, Ether, and most altcoins indicate a period of losses for the cryptocurrency market. However, this is not uncommon in the volatile world of digital currencies. It is important for investors to remain cautious and closely monitor market trends to make informed decisions. While the short-term outlook may be uncertain, many experts still hold a bullish long-term view for cryptocurrencies, emphasizing the potential for growth and adaptation in the future. As the market continues to evolve, it is crucial for investors to stay informed and stay nimble in their approach to cryptocurrency investments.