Bitcoin, Ether Suffer Small Losses as Fears of Recession Loom Large Over Global Economy

Most cryptocurrencies incurred losses as they entered into the mid of April. Bitcoin opened with a loss of 0.89 percent on Monday, April 11, which brought its trading value to $44,674 (roughly Rs. 34 lakh) as per Indian exchange CoinSwitch Kuber. The first ever cryptocurrency to have ever existed, BTC registered losses on international exchanges as well today. On Binance and CoinMarketCap for instance, BTC values dropped by around 1.60 percent. The cryptocurrency opened trading at around $42,083 (roughly Rs. 32 lakh) on foreign exchanges.

Following Bitcoin's trajectory, Ether prices also took a tumble. With a loss of 1.84 percent, ETH is trading at $3,368 (roughly Rs. 2.5 lakh) as per Gadgets 360's crypto price tracker.

The two most valued cryptocurrencies have recently shown improvement despite the overall cloudy economic climate around the world. With Ukraine and Russia being at war, and the fourth wave of COVID-19 locking down parts of China already — the global financial systems have taken a substantial hit.

Crypto experts predict that investors will not lose interest in the crypto asset category.

“Despite mounting fears of a looming recession triggered by the outlook of the global market, confidence in the crypto market continues to rally strong. Institutional and regulatory inroads into the digital asset sector continue to boost its acceptance. As economic uncertainty persists, Bank of America strategists have also anticipated that the lull in traditional markets will serve as a boon for crypto,” the research team at CoinDCX told Gadgets 360.

Altcoins such as Binance Coin, Ripple, Solana, Cardano, Polkadot, and Polygon also dropped in values.

Meme coins Shiba Inu and Dogecoin also failed to reel-in any gains.

Only a few altcoins, majorly stablecoins, opened with gains today. These include Tether, USD Coin, and Binance USD.

Recently recognised as a payment mode by the UK, stablecoins are crypto assets that are pegged to reserve assets such as gold or fiat currencies. Market volatility have lesser impacts on stablecoins because they manage to maintain their values based on the value of its underlaying asset.

Other underdog cryptocurrencies such as DOGEFI, Flex, and Floki Inu also brought back greens to the crypto price charts with tiny profits.

Industry experts, meanwhile, continue to trust that as more nations adopt regulatory frameworks around cryptocurrencies, the sector rise above the existing element of volatility.

“The crypto market may witness a stronger performance with the growing regulatory backing encouraging greater trust and credibility in crypto. The assets are expected to mirror safe-haven characteristics in the lacklustre traditional market,” the CoinDCX team added.

The New York Senate has become the latest regulatory body to authorise the development of new assessments and charges on crypto companies in a move towards regulation.

New York state's Department of Financial Services (NYDFS) has been given the responsibility of increasing its oversight on virtual currencies—on par with its regulated traditional finance counterparts.

The total market cap of the crypto sector has fallen to $1.94 trillion (roughly Rs. 1,47,80,580 crore) as per CoinMarketCap. The figure was higher on April 6, when the crypto market cap stood at $2.08 trillion (roughly Rs. 15,753,937 crore).

Cryptocurrency is an unregulated digital currency, not a legal tender and subject to market risks. The information provided in the article is not intended to be and does not constitute financial advice, trading advice or any other advice or recommendation of any sort offered or endorsed by NDTV. NDTV shall not be responsible for any loss arising from any investment based on any perceived recommendation, forecast or any other information contained in the article.