logo
  

Recession Fears And Dollar Strength Drag Crypto Markets

crypto dec21 05jul22 lt

Crypto markets turned edgy amidst a fresh wave of fear in the world financial markets on the recessionary impact of aggressive interest rate hikes by central banks. The anxiety lifted the safe-haven Dollar and the Dollar Index to a more than 20-year high of 106.59.

Cryptocurrency market capitalization dropped to $877 billion, registering an overnight decline of around 1.3 percent.

Meanwhile, the CoinShares' Digital Asset Fund Flows Weekly report on institutional investments showed inflow of $64 million for the week ended July 1, versus the outflow of $423 million recorded in the previous week. However, the major portion of $51.4 million was into short-bitcoin investment products.

Bitcoin is currently trading at $19,452.76, having shed 0.6 percent in the past 24 hours. The lead cryptocurrency traded between $20,405.12 and $19,365.74 in the past 24 hours. Bitcoin's crypto market dominance is currently at 42.1 percent.
Ethereum is trading at $1,102.23, after ranging between $1,165.68 and $1,087.36 in the past 24 hours.

In the Smart Contracts Category, while 2nd ranked Ethereum and 5th ranked BNB have edged up marginally, 8th ranked Cardano (ADA), 17th ranked Avalanche (AVAX) and 22nd ranked Chainlink (LINK) have all declined close to 2 percent. Market capitalization of the Smart Contracts Category decreased 0.4 percent overnight, to $211 billion or 24.1 percent of the overall crypto market.

Stablecoins are currently dominating 17.5 percent of the overall crypto market. Tether's (USDT) market capitalization decreased to $65.98 billion, versus $66.02 billion on Monday. USDCoin's (USDC) market capitalization increased to $55.83 billion, versus $55.82 billion on Monday. The 24-hour trading range for the top 4 stablecoins was Tether ($0.9992-$0.999), USD Coin ($1-$0.9999), Binance USD ($1-$0.9987) and Dai ($1-$0.9991).

The Centralized Exchanges category edged down 0.18 percent in the past 24 hours, amidst a broad-based decline in the crypto market. While top-ranked BNB(BNB) gained marginally, 15th ranked UNUS SED LEO (LEO) declined close to 3 percent. 21st ranked FTX Token (FTT) and 23rd ranked Cronos (CRO) have also made losses of less than 1 percent, dragging the category's market capitalization to $51.7 billion.

DeFi category market capitalization decreased by 0.9 percent to $47 billion. 16th ranked Wrapped Coin (WBTC) and 17th ranked Avalanche (AVAX), lost close to 1 percent.
The total value locked (TVL), the overall value of crypto assets deposited in all of the functions that DeFi protocols offer, including staking, lending and liquidity pools is currently at $81.5 billion.

The U.K. Govt has in a consultation document published on Tuesday called for views on the taxation of crypto asset loans and 'staking' within the context of Decentralised Finance (DeFi). According to the document, the government is interested in ascertaining whether administrative burdens and costs could be reduced for taxpayers engaging in this activity, and whether the tax treatment could be better aligned with the underlying economics of the transactions involved.

Among other categories, Web 3 declined 2.1 percent overnight to $20.1 billion. Research category market dropped 2.6 percent to $18.3 billion. The NFTs & Collectibles category shed 0.8 percent overnight whereas the meme category crypto assets lost 1.9 percent during the same period.

For comments and feedback contact: editorial@rttnews.com

Technology News

Follow RTT