Crypto market undergoes correction as U.S. infrastructure bill faces backlash
The global cryptocurrency market today stood at $ 1.76 trillion, dropping 2.6% daily as the US infrastructure bill, affecting crypto companies, faced downward pressure. opposition from crypto enthusiasts. After a strong rally before the weekend, trading volumes fell 7% as Bitcoin (BTC) returned after resistance at $ 45,000.
BTC briefly broke through the $ 45,000 level for the first time in two months, but sustained selling pressures at the 200-day moving average brought it down to $ 43,600 at 9:00 a.m. IST, a marginal decline 1.5%. BTC trading volume between exchanges saw a dramatic 8.3% drop amid the liquidation of $ 130 million BTC short positions after the peak of $ 45,000. It is facing short term resistance at levels of $ 44,000 now with key support at $ 40,690.
Ethereum (ETH), after a strong rally for over a week, saw a healthy correction with a 5% drop today. ETH closed the day below $ 3,000, although its weekly gains are still strong at 15%. ETH, which is trading at $ 2,950, is now facing resistance at $ 3,000 as its support levels are at $ 2,770 and $ 2,640.
The top 20 cryptocurrencies fell as a result of the BTC correction. Dogecoin (DOGE), Polkadot (DOT), Uniswap (UNI) and Chainlink (LINK) fell more than 5-6% while others suffered modest losses.
Investors are optimistic that BTC will recover from the $ 45,000 level in the coming days to support the growth of the broader market.
The best winners today:
- Xinfin Network (XDC): 30.0%
- Holo (HOT): 8.8%
- Decremented (DCR): 6.5%
Top losers today:
- Fantom (FTM): -9.8%
- Infinite Axis (AXS): -9.2%
- Enjin coin (ENJ): -8.1%
The scan includes the top 100 coins only from 9:00 a.m. IST
Source: CoinMarketCap
Crypto News at a glance:
- U.S. Senators Mark Warner and Kyrsten Sinema introduced an amendment to the U.S. Infrastructure Bill last week that changes a crypto tax reporting provision exempting validators from proof of work and proof of stake. Bill, which also enforces strict user identification procedures for crypto-based businesses, faces opposition from crypto enthusiasts as “#DontKillCrypto” campaign goes viral on social media .
- According to a report by game data aggregator InvestGame, blockchain game companies raised $ 476 million in the first half of 2021, accounting for 9% of total game investments during that time period.
- Oscar Mayer, a unit of food giant Kraft Heinz, has auctioned a single pack of Dogecoin-themed hot dogs for $ 15,001 on eBay.
- Short positions in Bitcoin worth $ 130 million were liquidated yesterday on several derivatives exchanges such as Bybit, OKEx, Binance and Huobi according to Bybt.com, a liquidation dashboard. Ethereum short positions amounting to $ 234 million were also liquidated after cryptocurrencies hit their multi-month highs.
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