NEW DELHI: Major cryptocurrencies were trading with mild gains on Monday. Crypto traders turned cautious over valuations of digital tokens, following volatility in the previous session. Seven out of top 10 digital tokens were trading with gains at 9.30 hours IST, led by Ethereum.
Britain’s watchdog Financial Conduct Authority (FCA) ordered cryptocurrency exchange Binance to stop undertaking any regulated activity in the country, saying the firm lacked authorization. The exchange would not be allowed to undertake any regulated activities without the prior written consent of the FCA.
Mexican billionaire Ricardo Salinas Pliego said his banking business may begin using Bitcoin, becoming the country’s first bank to start accepting the cryptocurrency. He is ranked as the third richest Mexican with an estimated fortune worth over $15.8 billion.
Prior to this, Bitcoin will become a legal tender in El Salvador, another South American country in September. It is the first nation to elevate the digital token to the status of a currency.
“The major selloff across the crypto spectrum observed last Friday seems to have subsided for now. Volume data from various exchanges show that several investors bought the dip in the markets over the weekend. However, it cannot be termed as a bullish momentum as the markets are clearly range-bound,” said Edul Patel, CEO and co-founder, Mudrex.
“BTC began the day at a decent 5 per cent higher over the previous day. Altcoins continue to be under some selling pressure. Overall, the markets can be expected to remain in consolidation for the short term.”
Back home, Bitcoin is becoming the new gold among Indian households. The cryptocurrency aficionado’s mantra that the digital currency is equivalent to digital gold is winning converts among the world’s biggest holders of the precious metal.
In India, where households own more than 25,000 tonnes of gold, investments in crypto grew from about $200 million to nearly $40 billion in the past year, according to Chainalysis.
Tech View by Siddharth Menon, COO WazirX
The Bitcoin chart has formed the double bottom pattern which is known for the trend reversal. RSI breaking the trendline may be a confirmation of the trend reversal.
$28,850 is the support level and $41,331 is the resistance level for Bitcoin. Breaching of these levels could confirm Bitcoin’s further trend.
(Views and recommendations given in this section are the analysts’ own and do not represent those of ETMarkets.com. Please consult your financial adviser before taking any position in the asset/s mentioned.)