Bitcoin, Most Cryptocurrencies Bounce to Recovery, Stablecoins See Small Dips

Bitcoin on Wednesday, August 3, opened with small losses. As per Indian exchange CoinSwitch Kuber, Bitcoin values hovered around $24,290 (roughly Rs. 19 lakh) after incurring a loss of 1.36 percent. On international exchanges, BTC recorded price fluctuations of about 0.13 percent to trade around the mark of $22,885 (roughly Rs. 18 lakh). Despite minor dips, BTC has continued to trade in recovered prices. Industry experts, in the beginning of the week, had predicted that if BTC keeps up this trajectory, it could soon claim the price point of $25,000 (roughly Rs. 20 lakh).

Ether bagged a tiny gain of 1.81 percent to trade at $1,738 (roughly Rs. 1.36 lakh) as per Gadgets 360’s crypto price tracker. The second-most valued cryptocurrency in the world has been reeling-in gains constantly for the past few days now that Ethereum blockchain’s eco-friendly update called the ‘Merge’ is closer to its release.

“Since the markets bottomed in mid-June, ETH has significantly outperformed BTC with the former rallying 60 percent in the same timeframe that BTC rose 16 percent , however it remains to be seen if ETH can maintain this momentum and continue the decoupling from BTC after the merge goes live which is anticipated tentatively around the September of 19,” the CoinDCX research team had noted earlier this week.

Profits dropped into the kitties of several altcoins today. These include Binance Coin, Cardano, Polkadot, Polygon, Avalanche, Tron, and Uniswap.

Stablecoins like USD Coin and Binance USD however, found themselves struck by losses.

In fact, even meme-based Dogecoin saw price slip, as opposed to its rival memecoin Shiba Inu, which registered price appreciation.

Talking to Gadgets 360, the research team of CoinDCX said that the correlation to equities and other traditional asset classes remains the main source of investors’ distrust.

“However a contrarian observation could suggest that further bullish momentum could be on the cards due to the fact that the circulating supply of stablecoins such as USDT and USDC continues to decline dramatically even as the price of Bitcoin rises, which in the past has foreshadowed parabolic BTC rallies particularly in July 2021 right before Bitcoin went from the $29,000 (roughly Rs. 23 lakh)-level all the way up to $69,000 (roughly Rs. 54 lakh),” the CoinDCX team said.

Presently, the market cap of the crypto sector stands at $1.06 trillion (roughly Rs. 83,47,073 crore) with a 0.89 percent increase over the last day, as per CoinMarketCap.

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