Bitcoin price: Bitcoin, Ethereum hold crucial supports; all eyes on India’s crypto bill
The asset will continue to maintain its bullish stance as long as it doesn’t fall below the $53,000 mark. Although it will not be able to step out of the consolidation phase until the price beats the $60,000 mark.
BTC, as always, has had a spillover effect on some altcoins too. Consequently, most altcoins also witnessed corrections this month.
Ethereum corrected last week after witnessing a short rally and crossing the $4,500 mark. Since then, it has fallen by approximately 20% and currently trades at $4,100. This fall could fuel inflows into the asset as many investors have been on the sidelines over the past couple of weeks. We continue to maintain a bullish stance on ETH as long as it sustains and trades above its strong support level at $39,00.
The overall outlook is mixed at this point in time as both BTC and ETH are trading sideways. November saw an impressive rally in the first two weeks, post which the market corrected, and since then it has been range-bound in a consolidatory phase.
Several altcoins have witnessed impressive moves lately, namely — BAT and MATIC. BAT has seen strong inflows this month and its fundamental outlook remains strong. It was the centre of attention recently after the alt’s price gained over 30% in a day following a partnership between Brave Browser and Solana. However, before the partnership buzz, BAT had already surged by close to 100% amid rising active users and transactions. Notably, the Brave Browser already has over 42+ million monthly active users and 1.3+ million content creators.
MATIC too has witnessed a strong rally last week. It surged to $1.89 from $1.45 over a span of just 48 hours. The asset has a market capitalization of $11.7 billion. An announcement that Binance limited PlayDapp (PLA), a blockchain gaming platform that is built on and utilizes both the Ethereum and Polygon networks is what most likely caused the rally in the asset.
Markets were volatile this month, but even then, most cryptos were in the green. We expect our favourite inflation hedge asset — BTC — to see attractive volumes and growth, as the fundamental outlook remains positive. Volumes have held up well this month which is necessary for prices to hold.
Along with BTC and ETH, the majority of other altcoins also witnessed a similar trend, appreciating through most of the month. As Banks, FIIs, governments, and MNCs continue to adopt digital assets, coupled with the ever so increasing coverage this asset class has been witnessing among institutions and research papers, the macroeconomic outlook is strong.
As mainstream, more credible fund managers and economists start investing and holding BTC as well as ETH, we expect others to follow suit, further instilling belief in the asset class and pumping up volumes.
The month ended with a few rumours surrounding the Indian crypto market. While the government has not specified anything at this point in time, the industry remains optimistic.
The Indian crypto market reacted adversely on Wednesday, when it crashed by 15% due to panic selling, however, quickly recovered, re-instilling the strong fundamental belief investors have in this asset class. The next few days remain crucial in defining what the crypto landscape will look like in India in near future.
(The author is Chief Revenue Officer at ZebPay. Views expressed are personal.)