The cryptocurrency marketplace saw considerable declines over the past day. The positive price reactions came as the impending war between Ukraine and Russia intensified.
Cryptocurrency traders turn defensive following decent upswings within the last few days. The tension between Ukraine and Russia ruined market sentiment as traders avoided risk assets amid uncertainties. Meanwhile, the reduced appetite for risk assets saw cryptos declining sharply. Moreover, investors search for haven such as gold, further dampening the sentiment.
Excluding the dollar-tied Tether, top digital coins traded deep in red early on Friday. Terra and Avalanche lost 9% each, whereas BTC and ETH dropped nearly 7% of their value. Moreover, the global cryptocurrency market capitalization crashed by more than 6.9% to hover at $1.85 trillion. Contrarily, the crypto market volume gained over 25% toward $87.62 billion.
India Updates
Enforcement Directorate probes the use of crypto and darknet by Dawood Ibrahim, India’s wanted fugitive. The authorities suspect that the criminal switched to digital tools for his proceeds of fraud via money-laundering activities to invest in overseas real estate.
India’s decision to introduce 30% taxation on crypto trading profits turns out to be an advantage for the nation’s cryptocurrency exchanges. On the other side, Binance’s WazirX saw daily sign-ups surging nearly 30% since 1 February. However, the rival CoinSwitch had a daily jump at 35%. That shows Indians are increasingly interested in crypto.
Meanwhile, multiple international and Indian exchanges approached CryptoWire to license its IC15 to launch services in their trading exchanges. CryptoWire is a fintech entity that launched IC15 to trach leading cryptocurrencies globally in market cap. Moreover, it is the first cryptocurrency index from India.
Expert View
The previous 24 hours had Ethereum and Bitcoin declining. The market cap also reflects drops by top alternative tokens. Mudrex’s Edu Patel commented on the conditions. He stated that the current tensions between Ukraine and Russia contributed to the bearish markets. Moreover, inflation concerns added fuel to the downtrends.
For now, Bitcoin holds beyond the psychological level of $40K. Losing grounds here will see the crypto plummeting to the critical support at $38,000. Patel advised traders to stay calm and avoid positions.
