BTC and ETH prices rise, while Stablecoins and Memecoins see their value drop

Bitcoin’s price on Wednesday was $27,145 (roughly Rs. 22 lakh) as the world’s most expensive cryptocurrency posted a small profit of 0.24%. The currency’s resistance level at this juncture is currently higher at $28,000 (roughly Rs. 23 lakh) on domestic and international exchanges. In the past 24 hours, the value of Bitcoin has increased by $70 (around Rs. 5,800). As of now, BTC is far from its previous all-time high of $68,000 (roughly Rs. 56 lakh) recorded in November 2021.

Despite Bitcoin’s stunted growth, the digital asset has become a major store of value in recent days, Parth Chaturvedi, Chief Investment Officer, CoinSwitch Ventures, pointed out in a conversation with Gadgets 360.

According to recent data from Glassnode, Bitcoin HODLing appears to be on the rise, as the proportion of BTC HODLed for at least a year has hit an all-time high of 68%. HODL, instead of SELL, slightly hints at a strong base of investor sentiment that may turn bullish. The Crypto Fear and Greed Index remains at the same position as yesterday at 50 points,” he added. The term HODL originated in the crypto sector and stands for industry slang – “Hold On for Dear Life”.

Ether posted very small gains on Wednesday. The digital asset rose 0.30% to trade at $1,846 (roughly Rs. 1.5 lakh). ETH has only risen by $6 (about 500 rupees) in the last 24 hours.

It should be noted that ETH has maintained a stagnant price below $1,920 (roughly Rs. 1.5 lakh) for the past 16 days, raising concerns. The digital asset attempted to break out of its price range on May 6, but the attempt was short-lived and lasted less than 24 hours. “With staking protocols reaching new highs, the price of Ethereum is likely to rise,” predicted Rajagopal Menon, Vice President of WazirX.

With both, BTC and ETH open with gains – many other cryptocurrencies have also seen an increase in value. These include Binance Coin, Cardano, Polygon, Solana, Polkadot and Leo, all of which posted modest but significant profits on Wednesday.

The overall crypto market fell 1.55% in the past 24 hours to $1.13 trillion (roughly Rs. 93,28,777 crore) on Wednesday, according to CoinMarketCap.

“Concerns about regulatory challenges in the crypto market and macroeconomic uncertainties, such as the US debt ceiling impasse, may have impacted market liquidity,” said Edul Patel, CEO of the crypto investment firm Mudrex at Gadgets 360. Given the market volatility, several popular cryptocurrencies saw declines in value on Wednesday, including stablecoins as well as memecoins.

Tether, USD Coin, Ripple, Binance USD, Dogecoin, and Shiba Inu — saw their value drop on the price chart.

The prices of Litecoin, Avalanche, Chainlink, Cosmos and Uniswap also fell on Wednesday.

The next few days could see the crypto sector stabilize, likely due to factors such as the International Organization of Securities Commissions issuing its own rules to oversee the virtual digital asset (VDA) industry.

In India, more and more crypto exchanges are trying to ensure tax compliance by users. Giottos, for example, has become the latest crypto exchange to partner with Singapore-based Taxnodes to help its users calculate their crypto taxes. Previously, ZebPay and WazirX also signed similar deals with Taxnodes.

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