BTC, ETH and most cryptocurrencies fail to gain steam, experts blame inflation

The crypto industry is, at this point, plagued with volatility due to the slowdown in economic activities around the world. On Thursday, May 26, Bitcoin, along with the majority of other cryptocurrencies, opened with losses. BTC fell by 0.86%, taking its trade value to $31,461 (roughly Rs. 24 lakh) on Indian exchange CoinSwitch Kuber. The world’s oldest cryptocurrency has also failed to see gains on international exchanges. Bitcoin price hovers around $29,848 (roughly Rs. 23 lakh) on exchanges such as Binance and CoinMarketCap.

Ether posted bigger losses than BTC today. Registering a drop of 3.28%, ETH values ​​fell to $2,048 (roughly Rs. 1.5 lakh), shows crypto price tracker by Gadgets 360.

Among other popular altcoins, Binance Coin, Cardano, Solana, Polkadot, and Avalanche found themselves at the bottom of the price ladder.

Dogecoin and Shiba Inu also recorded losses.

Speaking to Gadgets 360, the research team at crypto exchange CoinDCX said that the global economic climate acts as a major factor in bringing more reds than greens to crypto price charts.

“The recent openness of the United States to be nimble on economic policies saw equity markets rise this morning, although crypto remains very constrained. A lack of economic catalysts and persistent inflation have led many to believe that a recession is imminent, with funds cautious and conservative in their deployment of additional capital,” the CoinDCX team said.

Experts also noted that not all corrections and fluctuations in the market are always necessarily negative.

“They [market fluctuations] can also be healthy for resetting market valuations and investor expectations on longer-term market progress,” the CoinDCX research team added.

The gains were lightly hitting a small number of altcoins, including Tether, USD Coin, Tron, Monero and Decentraland.

The current global market capitalization of the crypto sector stands at $1.26 trillion (roughly Rs. 97,98,871 crore), according to CoinMarketCap.

Cryptocurrency is an unregulated digital currency, which is not legal tender and is subject to market risk. The information provided in the article is not intended to be and does not constitute financial advice, business advice or any other advice or recommendation of any kind offered or endorsed by NDTV. NDTV shall not be liable for any loss resulting from any investment based on any perceived recommendation, forecast or any other information contained in the article.