Crypto Market Dips as Bitcoin Hits $31,000 Level Again

The global crypto market lost around 2.2 per cent, losing its previous day's gains, to stand at $1.28 trillion as of 9am IST. This bearish phase continued to pull down market trade volume by 15 per cent in the last 24 hours. 

Bitcoin (BTC) flipped the 2 per cent gains it had garnered the previous day to fall below the $32,000 level closing at $31,550. The leading cryptocurrency continues to show an accumulation phase with persistent selling pressures invoking a price drain. BTC failed to test its first resistance level at $32,360 and was nearing the first and second support levels of $31,200 and $30,560 respectively. 

Ethereum (ETH), while exhibiting high correlation to BTC, ended the day below the $1,900 level, dipping notably by over 5 per cent. However, ETH steered clear of its major support level at $1,700. ETH is currently locked more in smart contracts than it is being traded on cryptocurrency exchanges, a clear sign of deflationary pressures ahead of its EIP-1559 upgrade next month. 

All major altcoins registered declines today with Cardano (ADA), Polygon (MATIC) and Solana (SOL) dipping several notches by 3 to 7 percent as the day closed. 

The bulls have successfully defended the $30,000 level for BTC in the past few days but the failure to achieve a strong rebound signals extended uncertainty over this week even as BTC continues to gain dominance at 46.2 per cent of market capitalisation. 

Top Gainers today:

1. NEM (XEM): 4.6%
2. Klaytn (KLAY): 2.1%
3. Siacoin (SC): 1.4%

Top Losers today:

1. Axie Infinity (AXS): -16.8%
2. Stacks (STX): -12.8%
3. THORChain (RUNE): -12.7%

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

Source: CoinMarketCap

Crypto News at a Glance:

1. El Salvador, after announcing Bitcoin as legal tender in June, is reportedly planning to launch its own stablecoin. The stablecoin, scheduled to be released by this year-end, will be issued by the central bank and backed by U.S. dollar.
2. South Korea’s Woori Bank has partnered with Coinplug Inc., a fintech solutions provider, in a bid to join the DACS (cryptocurrency custody services) market. 
3. Amidst continued regulatory crackdowns, Bitcoin blockchain has experienced four consecutive negative mining readjustments for the first time in a decade. 
4. Binance has burnt 1.3 million Binance Coin (BNB) tokens worth $393 million in its recent token burn. Token burns increase demand for a token on account of reduced supply. 

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