Cryptos Weaken Further

Cryptocurrencies continued their slide, shedding around 3 percent of market capitalization in a day and unseating market leaders Bitcoin and Ethereum from their coveted positions in the global assets’ hierarchy.

Emerging regulatory controls across the globe, lingering risk concerns over stablecoins, Senate hearing on stablecoins, another flash crash on Monday etc. kept sentiment subdued and triggered fresh selling. Wednesday’s interest rate decision by the Federal Reserve as well as a resurgent Dollar also kept markets on tenterhook. Aggregate crypto market capitalization has fallen to $2.18 trillion.

Top-ranked Bitcoin is trading at $47,878.46, down 2.3 percent from the previous day’s levels. BTC has touched a 24-hour low of $45,894.85. With this decline, Meta (Facebook) has surged past Bitcoin pushing it to the 10th position among all assets as per

BTC’s circulating supply has crossed a major milestone of 90 percent of total supply. The circulating supply is now at 18.9 million versus total supply of 21 million.

The 3.8 percent overnight decline in second-ranked Ethereum has pushed it to the 17th position in the global assets ranking published by, from 15th earlier as JP Morgan Chase and Visa have surged past in market capitalization. ETH had fallen to a 24-hour low of $3,680.61 and is currently trading at $3860.99.

Third-ranked Binance Coin (BNB), the native coin of cryptocurrency exchange Binance is down 4 percent on overnight basis and 8 percent on a weekly basis amidst Binance Asia Services Ltd withdrawing its application for a local license to run a bourse in crypto-friendly Singapore. The company would also be shutting down its trading platform in the city-state by February 2022. Till now, Binance was operating under a temporary exemption granted during the licensing process. The Monetary Authority of Singapore has said that applicants operating under the exemption would be required to cease providing regulated payment services. Meanwhile the Singapore affiliate of Binance is awaiting regulatory approval for an investment made in Hg Exchange (HGX), a regional private securities exchange that has been granted a Recognized Market Operator license by MAS.

The fourth most valuable crypto currency by market capitalisation and the leading stablecoin Tether (USDT) appears to have been caught in a class action lawsuit which too has impacted the sentiment and prices of cryptocurrencies. USDT, the top-ranked stablecoin has a market capitalization of $76.5 billion.

The United States Senate Committee on Banking, Housing and Urban Affairs is scheduled to meet at 10.15 Am on Tuesday, December 14th to conduct a hearing entitled “Stablecoins: How Do They Work, How Are They Used, and What Are Their Risks?” Market capitalization of the 73 stablecoins ranked by aggregates to $157.6 billion.

The FOMC’s Economic projections and the Fed’s interest rate decisions are due to be released on Wednesday. The likely hawkishness in the posturing and actions of the Fed have caused the Dollar Index to remain strong at 96.2.

Meanwhile, Europe-based crypto index provider Vinter, has announced the launch of a crypto asset index that would provide investors with diversified exposure to a basket of mid-cap crypto assets such as ADA, SOL, and BNB. The Vinter 21Shares Crypto Mid-Cap Index (ALTS), would be capturing the mid-cap portion of the crypto asset market after excluding the number one and two ranked crypto assets by market capitalization.

The spike in inflation has not only spooked financial assets but also the yellow metal which is often perceived as a potential inflation hedge. Gold is currently trading at $1785.25, down 0.18 percent on an overnight basis.

Will the Fed’s stance that aims to rein in inflation help Gold and Bitcoin to emerge as potential inflation hedges? Crypto enthusiasts would be eagerly waiting for such an uptick in Bitcoin.

Source: Read Full Article