crypto news: Crypto week at a glance: Buying at lower levels, strictness saddened sentiments

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After hit­ting a six-month low in the first month of the year, Bit­coin, the most active cryp­tocur­ren­cy, recov­ered near­ly 15 per cent to trade at $37,600 lev­els at the time of this arti­cle. Bit­coin, along with many oth­er cryp­tocur­ren­cies, had a fan­tas­tic yet volatile run in 2021, hit­ting all-time highs.

Neg­a­tive sen­ti­ments prevailed

The price cor­rec­tion was immi­nent to test the sup­port lev­els. Despite some bar­gain buy­ing at low­er lev­els by both insti­tu­tions and retail­ers, many remained on the fence due to the over­all neg­a­tive sen­ti­ments in the finan­cial markets. 

The rev­e­la­tion about Won­der­land’s chief archi­tect added more debt to the cryp­tocur­ren­cy mar­ket cap, as many asset-pegged tokens tanked near­ly 50 per cent.

Reg­u­la­tor’s rudeness

Restric­tive mea­sures tak­en by coun­tries with strict cap­i­tal con­trol regimes have also fuelled the sharp price cor­rec­tions. The Cen­tral bank of Pak­istan, People’s Bank of Chi­na and Bank of Rus­sia have all indi­cat­ed that they are still not in a mood to reg­u­late cryp­tocur­ren­cy assets. 

It will be inter­est­ing to see what direc­tion the Indi­an gov­ern­ment will take dur­ing the Bud­get ses­sion. It is quite evi­dent that the cen­tral banks across the globe are not in sync when it comes to cryptocurrency.

The flip side

When coun­tries like El Sal­vador, UAE and Turkey are mulling for wider adop­tion of cryp­tocur­ren­cies, Asian cen­tral banks have observed a wait and watch approach. The IMF’s request to El Sal­vador to drop Bit­coin as legal ten­der and Turkey Pres­i­dent Erdogan’s request to exam­ine the use of cryp­tocur­ren­cy fur­ther con­firms that we will wit­ness a volatile cryp­tocur­ren­cy mar­ket for the year 2022.

Top five gain­ers for the week:

  • Ren­der Token (RNDR): 63% up
  • Flow (FLOW): 40% up
  • Bora (BORA): 30% up
  • The Sand­box (SAND): 29% up
  • Loopring (LRC): 28% up

Top five losers for the week:

  • Ter­ra (LUNA): 26% down
  • Pan­cakeSwap (CAKE): 12% down
  • Kusama (KSM): 11% down
  • Cos­mos (ATOM): 9% down
  • Quant (QNT): 8% down

(Note: Data as of 12.00 noon IST, Jan­u­ary 30, 2021; Source: Coinmarketcap.com)

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