Bitcoin Ethereum See Market Corrections

Mubbsher Jutt
Mubbsher Jutt

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

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.

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.

FAQs

Institutional investors have contributed significantly to market growth, with over $41 billion invested in cryptocurrencies this year, helping legitimize crypto as an asset class.

Ethereum faced resistance at $4,094, leading to a slight decline. Its price has pulled back, with traders closely watching support levels.

The overall market capitalization has reached $3.46 trillion, showing a slight increase, but performance remains inconsistent across different cryptocurrencies.

Memecoins have faced increased selling pressure, leading to a bearish trend and a decline in their market capitalization, highlighting the speculative nature of these coins.

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