Completing one month into 2022, majority of the cryptocurrencies including Bitcoin opened with losses on January 31. The most valuable crypto asset is trading at $40,193 (roughly Rs. 30.15 lakh) with a loss of 1.84 percent on Indian exchange CoinSwitch Kuber. On international exchanges as well, Bitcoin has registered losses of up to 2.7 percent. As per CoinMarketCap, Binance, and Coinbase, Bitcoin prices are hovering around $39,926 (roughly Rs. 28 lakh). This entire month, the performance of Bitcoin has remained impacted by market volatility that ended up affecting the overall gains of the crypto sector.
Ether followed Bitcoin in tumbling further down the price ladder. With a loss of 1.66 percent, Ether is trading at $2,730 (roughly Rs. 2 lakh) according to Gadgets360's crypto price tracker.
With the top two cryptocurrencies struggling to gather gains, majority altcoins have also found themselves riddled with losses.
Binance Coin, Cardano, Solana, Ripple, and Polygon among several other cryptocurrencies witnessed significant price dips.
Meme-based Dogecoin and Shiba Inu also failed to add any value to their existing prices.
Amid such a tight market movement, only Tether, USD Coin, and Chainlink managed to register marginal gains on the crypto price charts.
Several reasons have aligned in recent days that have contributed to the pressure on the crypto market, leading to significant overall losses.
The country's central bank's threats to prohibit crypto in Russia was one of the reasons why cryptocurrencies failed to see any profits towards the end of January 2022. Currently, Russia is exploring a roadmap to regulate digital assets instead of having to impose a blanket ban like China did last year.
In India also, investors in the crypto sector are awaiting the annual Budget hearing slated for February 1. It is not clear as of now if finance minister Nirmala Sitharaman plans to address the crypto sector in her Budget speech, but the subject is speculated to come up during the Budget Session of the Parliament.
In November last year, the finance ministry had listed its draft of the crypto regulatory bill on the parliamentary agenda. The bill that proposed a ban on private cryptocurrencies did not reach Parliament in the last session and was awaiting approval from the Cabinet.
Meanwhile, industry experts believe that smart rules are unmissable for protecting crypto investors from market risks.
“As the crypto industry matures, smart regulations are important to protect users and companies alike while continuing to encourage innovation in the industry — this is especially necessary as our future becomes increasingly more entrenched in digital,” the research team at CoinDCX told Gadgets360.
Interested in cryptocurrency? We discuss all things crypto with WazirX CEO Nischal Shetty and WeekendInvesting founder Alok Jain on Orbital, the Gadgets 360 podcast. Orbital is available on Apple Podcasts, Google Podcasts, Spotify, Amazon Music and wherever you get your podcasts.
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