Crypto Market Logs in 3.5% Drop in Trade, Bitcoin Sheds Weekly Gains

The global crypto market retracted to $1.60 trillion after dropping 3.5 per cent today post a 11-day rally. Investors continued to be optimistic, though, and sensed a ‘buy’ opportunity as trade volumes soared by 9 per cent across exchanges.

Bitcoin (BTC), amidst strong bullish sentiments, faced corrections at the start of the week to fall by 6 per cent as of 9 am IST to close at $39,700. BTC remained above the $41,000 threshold for the better part of the day but was pulled down by the bears in the early hours on Monday. BTC might test its first support at $39,000 soon if it maintains its downtrend. BTC trade volume across exchanges increased by over 7 per cent.

Ethereum (ETH) lost marginally by 0.8 per cent and sustained its previous week’s gains. It closed at $2,560 just ahead of its resistance level at $2,530. Its support levels are forming at $2,330 and $2,250.

Major altcoins flashed red today with Polygon (MATIC), Stellar (XLM) and Theta (THETA) losing 5-7 per cent in the last 24 hours while others registered moderate declines between 3-4 per cent.

Investors will expect BTC to bounce back from its current support towards $42,000 levels this week and test out its 20-week moving average later. ETH’s hard fork going live on August 4 should continue to drive momentum in the broader altcoin market if BTC holds its position.

Top Gainers today:

1. Quant (QNT): 10.6%
2. Terra (LUNA): 5.8%
3. Zcash (ZEC): 1.2%

Top Losers today:

1. Siacoin (SC): -16.7%
2. ICON (ICX): -9.5%
3. IOTA (MIOTA): -9.3%

The analysis includes the top 100 coins only as of 9 am IST

Source: CoinMarketCap

Crypto News at a Glance:

1. Germany alters fixed investment rules governing Spezialfonds, also known as special funds, and will allow institutional investors to hold up to 20 per cent of their assets in cryptocurrencies. Spezialfonds currently manage about $2.1 trillion worth of assets.
2. Matrixport, an Asia-based crypto platform, has raised $100 million with a $1 billion plus pre-money valuation in a Series C funding round. It currently has $10 billion in assets under management.
3. Saudi Aramco, Middle-East based oil giant, is reportedly planning to join the cryptocurrency ecosystem by using excess gas from oil production to mine digital assets, according to reports.
4. According to news and research firm The Block, Bitcoin miners registered earnings of over $970 million including transaction fees in July, up 15 per cent from June.

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