According to analysts, the price of cryptocurrencies is currently correcting. On December 11, Bitcoin (BTC) showed a slight increase of 0.85% in worldwide Market Corrections. According to CoinMarketCap, Bitcoin was trading at over ₹82.7 lakh (about $97,520) on foreign marketplaces during that period. On exchanges such as CoinSwitch and Giottus, the price of Bitcoin in India increased by 0.60%, trading at approximately $97,427 (approximately ₹82.6 lakh). Several factors, such as institutional interest and market sentiment, have contributed to the persistent volatility of the cryptocurrency market, and this price volatility is a reflection of that.
Market Activity is Influenced by Institutional Interest
Significant advances have recently occurred in the cryptocurrency Market Corrections, especially in investment inflows. BuyUcoin CEO Shivam Thakral has stated that crypto investment products have received an unprecedented $3.85 billion, or almost ₹32,675 crore. The total for the year now stands at a remarkable $41 billion, or around ₹3,47,934 crore. Institutional investors are the main force behind the investment boom, particularly in cryptocurrencies like Bitcoin and Ethereum.
Importantly, this institutional involvement shows that crypto is becoming recognized as a real asset class. If more institutions invest in cryptocurrencies, the market’s stability may improve. However, as we can see from recent price changes, the market is still ready to correct. Even with the continued interest from institutional investors, trading cryptocurrencies still involves risks, which could reduce some volatility.
Ethereum Encounters Opposition
In addition, Ethereum (ETH) has also been impacted by the most recent market corrections dynamics, as it has experienced a slight decline of approximately one percent in national and international exchanges. When this article was written, the price of Ethereum was $3,664 in Indian markets and $3,655 (corresponding to approximately ₹3.10 lakh) worldwide.
The price of Ethereum encountered significant resistance at $4,094 (about ₹3.47 lakh) on December 6. Sellers strongly contested this level, suggesting bearish resistance. Consequently, the price of Ethereum could soon pull back to test the short-term support zone of the 20-day Exponential Moving Average (EMA). A prolonged loss below this level could signal a change in momentum, suggesting more drops. To predict how Ethereum will do in the future, traders and investors carefully monitor these levels.
Market Trends as a Whole and Memecoins
At the end of the previous day, the market capitalization of cryptocurrencies reached over $3.46 trillion, equivalent to around 2,93,58,856 crore rupees, a half-percent increase. The performance of cryptocurrencies was inconsistent, with some experiencing slight gains while others experienced losses. Cardano, Tether, Ripple, and Solana were among the first batch of cryptocurrencies.
For instance, selling pressure has intensified for meme coins, leading to a bearish trend that has erased previous gains. As of December 10, the market capitalization of the memecoin sector was $119.6 billion, which is approximately ₹10,14,800 crore, marking a three-week low. As the memecoins’ value grows more speculative, Bitcoin is in a somewhat stronger position due to this fall. According to Avinash Shekhar, Pi42’s co-founder and CEO, the divergent performances of Bitcoin and meme coins show how unpredictable and speculative the cryptocurrency market is.
[sp_easyaccordion id=”4139″]
