BackCrypto weekly round-up: What pilots to back in the red amid macroeconomic fears?
The riskier asset class, such as cryptocurrencies, were again in the red on Friday as a result of the macroeconomic concerns, as the global market valuation for cryptocurrencies is now $940.46B, a 2.25% decline from the previous day.
PremiumThe riskier asset class, such as cryptocurrencies, were again in the red on Friday as a result of the macroeconomic concerns, as the global market valuation for cryptocurrencies is now $940.46B, a 2.25% decline from the previous day. According to statistics from CoinMarketCap, the overall cryptocurrency market volume during the past 24 hours was $54.13B, an 11.69% decline. $3.24B, or 5.99% of the 24-hour volume of the overall crypto market, was the total volume of DeFi while writing this copy.
All stable coin volume is currently $49.79B, or 91.98% of the 24-hour volume of the whole crypto market. The cryptocurrency market has held up well over the past week, with the total market value holding around the $1 trillion mark. However, Bitcoin, which recently broke above the $20,000 level, is presently back in the red with a dominance of 39.60%, down 0.35% from the previous day. The last-minute Bitcoin was seen trading, it was at $19,410.21, down 0.83% from the previous hour, 3.43% from the previous day, and 1.79% from the previous seven trading sessions. The market cap of the aforementioned cryptocurrency was $372,558,999,098 and its volume was $30,167,308,577 over the previous 24 hours.
Due to strong inflation and fluctuations in the US Dollar during the last week, the volatility in the markets for cryptocurrencies remained high. USDINR was seen closed at 82.32, up 44 paise, a new record high. The intraday peak was 82.42. Regardless of the price rebound of key crypto assets, Binance already had the strongest headline of the week, as approximately $100 million worth of Binance Coin was reportedly stolen through hacking.
Parth Chaturvedi, Crypto Ecosystem Lead, CoinSwitch, said “Crypto markets have remained resilient this past week, with overall market capitalisation close to the $1 trillion level, while BTC has been trading range-bound around $20k. XRP has continued to pump after its minor win against the SEC, almost 10% higher than last week. MATIC is up over 11%, as it continues to build major collaborations for adoption."
He further added that “At a macroeconomic level, there was a major policy u-turn from the newly formed UK government, which decided to roll back the proposed tax cuts, that had sent the GBP into a depreciation spiral. Risk-on assets reacted in tandem, with most of them reversing their price slide, and have been trading in the green for the last two sessions. However, the recovery seems to be built on fragile narratives and investors need to remain cautious, particularly regarding European inflation. Germany's monthly inflation went into double digits (10.9%) after 70 years! And OPEC+ has decided to make deep production cuts to shore up oil prices, defying US pressure."
“In India, the CRE8 Index was up by 1.22%, reflecting the global sentiments. As of 08:00 IST, 07th Oct, the Index Value (sum of crypto asset values of all the crypto assets in the CRE8 Index) stood at ₹2678.62. BTC and ETH were the top assets by market capitalisation. From a weekly perspective, from 30th Sep to 07th Oct, the CRE8 index was negligibly down by 0.008%, from ₹2678.84 to ₹2678.62," said Parth Chaturvedi.
While the effects of global rate hikes and inflation continue to have an influence on the cryptocurrency market, it appears to be on the approach of catastrophe. Notwithstanding persistently gloomy financial statistics from overseas markets, a buoyant opening to Q3FY23 for cryptocurrencies, with a total market valuation of over $1 trillion was seen, the prevailing macroeconomic environment has a substantial impact on the cryptocurrency market mixed with rising inflation in the global economy.
The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
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