Bitcoin trades in “extreme fear”, around Rs 23 lakh
Early on June 12, cryptocurrencies were trading in the red. The global cryptocurrency market worth was $1.13 trillion as of June 11, down 5.09 per cent from the previous day.
The cryptocurrency market volume increased by 6.14 per cent in the last 24 hours to $71.55 billion. Bitcoin, the world’s largest and most popular cryptocurrency, was trading at around Rs 23 lakh (about $29,000), with a 47.66 per cent market share.
Notably, the digital coin was down over 35 per cent and was trading well below its all-time high of $69,000 set in November 2021.
The Bitcoin Fear & Greed Index was in the “extreme fear” zone, reversing a recent small gain over the past few days.
Going by the ‘historical values’, Bitcoin has been in the ‘extreme fear’ zone for quite some time. The bearish mood has been a recurring issue recently, keeping some cryptocurrency investors on the fence.
Technical indicators, like stocks, showed a short-term decline in Bitcoin’s price motion, according to CoinDesk, which said that Katie Stockton, the managing partner at Fairlead Strategies, an independent research provider, had written in an email that in the case of Bitcoin, the likelihood of a retest of long-term support around $27,200 has increased, with intermediate and long-term momentum gauges pointing to more downside.
The entire volume in DeFi was $6.08 billion, accounting for 8.50 per cent of the overall 24-hour volume in the cryptocurrency market. The overall volume of all stable coins was $60.71 billion, accounting for 84.84 per cent of the total 24-hour volume.
Last week, Bitcoin fell below the $33,000 resistance mark, indicating a loss of upward momentum. This reduces the chances of a sustained relief rally.
The coin has been essentially flat in a turbulent trading range for the previous week. Initial support, according to CoinDesk, is seen at $25,000, which is near the May 12 price low.
Meanwhile, in the lack of a centralised regulatory authority, Chief Economic Adviser V Anantha Nageswaran recently said that cryptocurrencies were similar to “a world of Caribbean pirates” and were yet to pass the test of a fiat currency.
He said the government was doing a balancing act, trying to guarantee that the previous four years’ gains in GDP, inflation, and rupee stability were not squandered.
He suggested that the Terra-Luna cryptocurrency’s recent catastrophic meltdown was a “very important cautionary tale”.