All cryptocurrencies that were trading in profits 24 hours ago are currently reflecting losses, plunging the price chart into the red. Bitcoin saw a price drop of 0.66 percent on Wednesday, December 20. At the time of writing, the crypto asset was trading at the price of $42,064 (approximately Rs. 34.9 lakh). Bitcoin's value remained virtually unchanged over the past day. Despite market fluctuations, indicators suggest that a state of 'extreme greed' is currently hanging over the crypto market.
“Despite temporary price shifts, Bitcoin's robust increase of approximately 150 percent has maintained positive market sentiment to date. Michael Saylor's endorsement of the spot BTC ETF as the biggest thing on Wall Street since the S&P Index has added to the excitement surrounding Bitcoin. Anticipation of institutional investors entering the scene is considered a crucial factor that is expected to drive Bitcoin prices higher in the coming year,” Rajagopal Menon, Vice President of WazirX told Gadgets360.
The price of ether fell 1.23 percent on Wednesday. The cryptocurrency was trading at $2,209 (approximately Rs. 1.83 lakh) on Wednesday.
“ETH seems relatively weaker than BTC. It follows a downtrend channel, characterized by lower lows and lower highs. Additionally, ETH is below the 20 EMA D for the first time in the past two months, potentially signaling a near-term bearish trend if a recovery does not occur,” the CoinDCX research team told Gadgets360.
Most cryptocurrencies posted losses on Wednesday against the backdrop of accelerating market volatility. Ripple, Solana, Cardano, Avalanche, Dogecoin, Polkadot, Polygon, Chainlink and Shiba Inu are all suffering losses.
“SOL (-0.7 percent) saw 400 percent growth in user activity in the fourth quarter, outpacing Ethereum (ETH, -2.2 percent). A report from Messari explains that the recent surge in new demand for Solana is due to the series of token airdrops completed by some protocols within the SOL network,” the CoinSwitch Markets Desk told Gadgets360.
Price drops also hit Litecoin, Bitcoin Cash, Uniswap and Stellar.
The total cryptocurrency market capitalization has fallen by 0.62 percent in the past 24 hours. The industry's valuation currently stands at $1.6 trillion (approximately Rs. 1,33,04,560 crore), according to CoinMarketCap.
Meanwhile, Tron, Binance USD, Decentraland and Iota emerged among a handful of winners on Wednesday.
Cryptocurrency is an unregulated digital currency, not legal tender and subject to market risks. The information contained in this article is not intended and does not constitute financial advice, trading advice or any other advice or recommendation of any kind offered or endorsed by DailyExpertNews. DailyExpertNews is not responsible for any loss arising from any investment based on any perceived recommendation, forecast or any other information contained in the article.