Crypto wrap: Market trading sideways as altcoins under selling pressure

On a positive note, the chances of a spot Bitcoin ETF being launched in the US this year have improved significantly, from 50% to 65% as per Bloomberg Intelligence

Bitcoin, cryptocurrency

Photo: Bloomberg

Raghav Aggarwal New Delhi

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The cryptocurrency market traded sideways in the last week as investors await clarity on regulations in the US. Several altcoins, including XRP and Dogecoin, saw profit booking but major tokens like Bitcoin and Ethereum remained flat.

According to CoinMarketCap, Bitcoin on Friday was trading at $29,146, down nearly 0.5 per cent in the last seven days. Ethereum was down 1.9 per cent and was trading at $1,833. On the other hand, XRP was down 7.5 per cent and Dogecoin was 3.4 per cent in the red.bit

"The crypto market has traded lower this past week, with altcoins coming under selling pressure and falling sharply in prices, even though the overall market capitalisation remains just above $1.2 trillion. This overall steadiness is primarily driven by heavy-weight market leaders, Bitcoin and Ethereum which account for a combined share of more than two-thirds of the total crypto market cap, remaining range bound in prices around levels of $29,000 and $1,800 respectively," said Parth Chaturvedi, investments lead, CoinSwitch Ventures.

"As of now market indicators point to a 'sell' sentiment," said Rajagopal Menon, vice president at crypto platform WazirX.

"Crypto market continued sideways movement through the week as consolidation seems to be the flavour of the week. Altcoins have executed slight positive sentiments," said Menon.

"Traders and investors are eagerly anticipating the release of the July US non-farm payroll data, which is due later today," he said.

According to the research team of crypto exchange CoinDCX, investors are waiting for more clarity on the regulatory environment and the potential approval of a Bitcoin ETF in the US.

On a positive note, the chances of a spot Bitcoin ETF being launched in the US this year have improved significantly, from 50 per cent to 65 per cent as per Bloomberg Intelligence. Companies such as BlackRock, Fidelity, WisdomTree, and Valkyrie have applied to create a spot in the Bitcoin ETF.

Menon also added that while the market manoeuvres through the fluctuations, both traders lookout for any changes in sentiment that could indicate an approaching shift in the current market trend.

"The capacity of the cryptocurrency market to endure the challenges posed by volatility is certain to remain a central topic of conversation in the upcoming days," he added.

First Published: Aug 04 2023 | 6:20 PM IST

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