Global crypto market regained momentum today led by green candles across price charts of Bitcoin (BTC) and altcoins. Bulls were back in action driving the overall market capitalisation to $2.10 trillion with a strong 6 per cent gain in the last 24 hours. Trade volume across exchanges dipped slightly by 2 per cent to $107 billion. The surge in the markets arrived after the US Federal Reserve indicated that tapering of asset purchases will likely begin by the end of this year. The confirmation of a delay in tapering gave momentum to financial markets including record highs at S&P 500 and Nasdaq while weakening the US dollar.

BTC, after facing a correction up to $46,700 yesterday, climbed steadily to register a 5 per cent gain at $49,020 as of 10 am IST. BTC’s RSI, despite showing overbought conditions, bounced back from its support leading to a price surge. BTC’s next major resistance stands close to the $50,000 mark while its pivot point is forming at $47,170. Its 200-day moving average at $46,000 continued to act as a support. BTC dominance has dropped to 43.8 per cent.

Ethereum (ETH) overturned its downward trend to close at $3,250 with a 5 per cent increase, unaffected by the news of an exploit in one of its software clients. ETH pulled through its support at $3,120 and is eyeing the next resistance at $3,340 level.

Most of the top 100 cryptocurrencies were in the green today with Cardano (ADA) and Internet Computer (ICP) posting double-digit gains. Traders hope that ADA, currently the third largest cryptocurrency, will break the $3 level this weekend after a monthly rally that has more than doubled its price. Dogecoin (DOGE), Ripple (XRP), Solana (SOL) and Terra (LUNA) gained between 7 to 9 per cent over the day. On a weekly timeframe, most of the altcoins are still in the red.

An increased whale (investors holding more than 100 BTC) activity suggests a renewed confidence in the BTC market. BTC has potential to break its current channel above the $50,600 mark while $46,000 levels can be retested in case of a drop. Despite BTC’s decreasing dominance, it continues to drive the broader market.

Top Gainers today:

1. Celo (CELO): 49.5%
2. Arweave (AR): 48.8%
3. Tezos (XTZ): 19.6%

Top Loser* today:

1. UNUS SED LEO (LEO): -0.7%

The analysis includes the top 100 coins only as of 10 am IST

*All other coins have gained except LEO

Source: CoinMarketCap

Crypto News at a Glance:

1. According to the Reserve Bank of India (RBI) governor, the central bank is currently studying the impact of central bank digital currency (CBDC) on monetary policy and could begin CBDC trials by December 2021.
2. Cuba has signed a resolution that will allow its central bank to recognise and regulate cryptocurrencies like Bitcoin as means of payment amid the growing economic restrictions imposed by the US in recent years.
3. Japanese financial firm Nomura Holding Inc. has announced a new blockchain token service that lets customers purchase and trade food dishes at a high-end food delivery service.
4. Geth, one of Ethereum’s software clients, was exploited by hackers yesterday causing all geth nodes with earlier versions to split from the main network. No major impact to the ETH network has been reported.
5. Honduras, a Central American country neighbouring El Salvador, has installed its first Bitcoin ATM allowing users to buy Bitcoin and Ethereum using the local fiat currency.

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