Cryptos Subdued As Markets Speculate On Russia Sanctions, Fed’s Rate Hikes

Cryptocurrency market capitalization edged down more than half a percent amidst a global market scenario pivoted on talks of imposing fresh sanctions on Russia. Caution also prevailed ahead of Wednesday’s release of the previous FOMC minutes, as markets seek to assess the mood in the key policy making body in favour of a faster interest rate lift off. Friday’s jobs data had showed strong labor market conditions, renewing fears of an aggressive stance by the Fed.

Crypto market capitalization is at $2.14 trillion and the 24-hour volume just above $100 billion. Bitcoin’s dominance dropped to 40.8 percent while Ethereum’s market share surged to 19.5 percent.

Bitcoin is trading at $45,968.61, down 0.96 percent on an overnight basis.

Ethereum is also down on an overnight basis, with the current trading price of $3,464.49, implying a 0.94 percent overnight drop.

7th ranked Cardano (ADA) has gained more than 2 percent overnight and is currently trading at $1.21.

Meme coin Dogecoin (DOGE) rallied more than 5 percent to trade at $0.1504 amidst news of Elon Musk, picking up a 9 percent stake in Twitter Inc. It is currently ranked 12th among all cryptocurrencies.

37th ranked Waves (WAVES) dropped more than 15 percent overnight amid allegations of market manipulation and a spat with Almeda Research. The drop in the crypto’s liquidity also impacted the blockchain’s dollar pegged stablecoin falling in value.

At current levels of market capitalization, Bitcoin (BTC), Ethereum (ETH), BNB (BNB), Solana (SOL), Cardano (ADA),XRP (XRP), Terra (LUNA), Avalanche (AVAX), Polkadot (DOT), Dogecoin (DOGE), TerraUSD (UST), Polygon (MATIC), NEAR Protocol (NEAR), Cosmos (ATOM) and Litecoin (LTC) are the top-ranking crypto coins.

In the tokens category, Tether (USDT), USD Coin (USDC), Binance USD (BUSD), SHIBA INU (SHIB), Wrapped Bitcoin (WBTC), Cronos (CRO), Dai (DAI), Uniswap (UNI), Chainlink (LINK), FTX Token (FTT), UNUS SED LEO (LEO), Decentraland (MANA), The SandBox (SAND), Axie Infinity (AXS) and THORChain (RUNE) rank in the order of market capitalization.

In the category-wise market capitalization dominance, Smart Contracts aggregate to 28.96 percent; Stablecoins dominate 8.98 percent; DeFi is at 8.25 percent; Centralized Exchanges add up to 4.95 percent; Web 3 sums up to 2.91 percent; Research grosses 2.39 percent; NFTs account for 2.38 percent; Metaverse commands 1.67 percent; Memes command 1.59 percent; Gaming enjoys 1.53 percent; Decentralized Exchanges amount to 1.51 percent; while Scaling follows with 1.42 percent market capitalization.

A recent survey conducted by Goldman Sachs has revealed that the institutional investment in cryptocurrency has increased from 40 percent in 2021 to more than 51 percent in 2022. 60 percent of the 172 clients surveyed also indicated their intention to increase crypto exposures in the next year or two.

Meanwhile, the U.S.SEC has, citing a lack of investor protections, rejected the proposal for a physical Bitcoin ETF that was filed by Ark 21Shares run by Cathie Wood.

Hardware wallet Trezor has reported a phishing attack on Saturday, and has asked users not to download any emails from the company.

Indian crypto exchanges, in the meanwhile reported drop in trading volumes as the new tax regime was rolled out. The new law imposed a 30 percent taxation on capital gains from digital asset.

The war in eastern Europe as well as the war against prices continue to impact cryptocurrencies. The increased regulatory resolve around crypto supervision too has influenced prices and volatility of late.

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