After a blip following China terming all cryptocurrency transactions as illegal, major coins saw low-level buying and gained up to 11 per cent on Monday.
Among the top 10 coins, Ethereum was the biggest gainer, up nearly 10.30 per cent. Solana, XRP and Bitcoin rallied 4-7 per cent. Others were also in the green. Uniswap was among the biggest major gainers beyond the top 10 bracket, surging 32 per cent.
“As the FUD (fear, uncertainty and doubt) around the cryptocurrency ban in China is slowly leaving the market, there is a sense of stability across the crypto spectrum. With Bitcoin surpassing the $44,000 mark, most of the other top cryptocurrencies followed suit. The coming 24 hours could be a period of stability across the crypto spectrum,” said Edul Patel, CEO and Co-founder of Mudre. Crypto nomads are a group of industry leaders who once lived in a country but have since set up companies with bases of operation where they are to some degree beyond the reach of regulators
Earlier, several Indian investors rushed to square off their positions in smaller cryptocurrencies while others took refuge in safer names like Bitcoin and Ethereum as the asset class tumbled on Friday and Saturday after the Chinese central bank declared all cryptocurrencies illegal.
Meanwhile, concerns of US Federal regulators have only grown as both new and established firms have rushed to find ways to profit from bringing the massive wealth held in cryptocurrency into the traditional financial system through quasi-banking services like interest-bearing accounts and lending.
Now the Treasury Department and other agencies are moving urgently on an initial target for tighter regulation: fast-growing stablecoin, i.e., tokens like USD Coin and Tether. Stablecoins serve as something of a bridge between cryptocurrency markets and the traditional economy.
Tech View by Siddharth Menon, COO, WazirX
Bitcoin, along with major altcoins, remained bearish on the lines of the recent ban by China on all cryptocurrencies. Bitcoin has dropped below its 200-day moving average and is trending within the descending channel pattern. We may see BTC breaking out from the top of the pattern after which we can expect to see considerable buying momentum. Interestingly, analysts at Deutsche Bank have recently said Bitcoin will be 21st century’s digital gold.
Among altcoins, Cardano (ADA) seems to be holding strong after the recent bearish cycle. The trend indicates a mostly developed flag pattern. Once the trend breaks out from the top levels, we could see prices soaring to $4.5 levels in no time. The Ethereum competitor is fast living up to its expectations.
After the recent sell-off of about 15 per cent, crypto markets have slowly started a recovery cycle. The total crypto market cap, excluding BTC and ETH, is trading close to $770 billion falling down from a recent near ATH of $980 billion hit in August this year. This market is poised to grow at a faster rate than the BTC .