{ Indian Parliament’s Crypto Revelation, Cryptocurrency, Crypto Revelation, Bitcoin, Parliament, Virtual Digital Assets, FIU registration, ETF, Market Surge, Market Correction, Solana, Total Value Locked, Bull Trap, Short Selling, Global Macro Factors, Crypto Momentum}
Parliament’s Crypto Revelation Impact on the Crypto Landscape
In a recent revelation during the ongoing Winter Session in Parliament, the Centre disclosed that 28 Virtual Digital Assets service providers have registered with the Financial Intelligence Unit (FIU). This development underscores the growing influence of cryptocurrencies in the financial landscape.
Virtual Digital Assets Service Providers Registration
The government’s acknowledgement of 28 virtual digital assets (VDA) or crypto service providers aligns with the evolving regulatory landscape. The registration with FIU signifies a step towards creating a more transparent and accountable cryptocurrency ecosystem.
Bitcoin’s Bull Run and ETF Optimism
Cryptocurrency experienced a significant surge in the past week, primarily fueled by optimism surrounding Bitcoin exchange-traded funds (ETF). Bitcoin, the flagship cryptocurrency, recorded a notable 12.5% increase over seven days, reaching $43,387. Ethereum followed suit with a 12.7% rise, trading at $2,356. The highlight was Bitcoin’s milestone breach of $44,000, marking an 18-month high.
“Blackrock’s spot ETF application secured its announced $100,000 seed funding, sparking anticipation of approval. This contributed to a broader market upswing, propelling the overall crypto market cap to nearly $1.6 trillion,” noted Parth Chaturvedi, investments lead at CoinSwitch Ventures.
Market Cap Soars to $1.6 Trillion
The crypto market witnessed a sea of green as Bitcoin’s positive trajectory lifted the entire market. Notable developments in large-cap tokens included Solana’s surge past $70, driven by increased network activity and Total Value Locked (TVL). The Solana ecosystem’s airdrops, notably JITO!, further added to the positive sentiment.
Token-Specific Developments and Solana’s Surge
For token-specific developments, Solana stood out with a surge past $70. The rise was attributed to heightened network activity and Total Value Locked (TVL). Additionally, the Solana ecosystem’s airdrop initiative, particularly JITO!, made a strong start, underlining the vibrancy of the crypto space.
Correction and Profit Booking
Despite the bullish trend, the crypto market experienced a minor correction in the past two days, leading experts to speculate on profit booking as a contributing factor. CoinDCX’s research team noted a dip in Bitcoin’s value to $43,000, retracing from its swift ascent to nearly $45,000 earlier in the week. This correction may be a typical market response after the significant breakout from $38,000 a week ago.
Potential Bull Trap and Short Selling Concerns
Analysts are cautious about a potential bull trap emerging in the market. The recent dip in BTC to $43,000 raises concerns about a market correction, possibly leading to short selling in the coming days. Rajagopal Menon, vice president at WazirX, commented, “While these patterns aren’t uncommon, the possibility of a bull trap has started creeping into the market. This could also possibly usher in short selling in the coming days unless investors continue to persist till ETF approvals come in.”
Sustained Market Momentum
Shivam Thakral, CEO of BuyUcoin, remains optimistic about the current market momentum, expecting it to be sustained. He attributes this optimism to positive global macroeconomic factors, indicating a broader positive sentiment that could continue to support the cryptocurrency market.
Frequently Asked Questions (FAQs)
1. Q: What is the significance of the 28 Virtual Digital Assets service providers registering with FIU?
A: This registration demonstrates a move towards transparency and accountability in the cryptocurrency ecosystem, aligning with evolving regulatory standards.
2. Q: What fueled the recent surge in Bitcoin’s price to an 18-month high?
A: Optimism surrounding Bitcoin exchange-traded funds (ETF) played a significant role, particularly with Blackrock’s spot ETF application receiving $100,000 in seed funding.
3. Q: How much did Bitcoin and Ethereum rise in the last seven days, and what were their respective values?
A: Bitcoin rose by 12.5% to $43,387, while Ethereum increased by 12.7% to $2,356 during the week.
4. Q: What factors contributed to the overall Crypto market cap reaching $1.6 trillion?
A: The announcement of Blackrock’s spot ETF application funding and positive market sentiment resulted in a substantial market cap increase.
5. Q: Can you highlight any specific token developments mentioned in the article?
A: Solana’s surge past $70 was notable, driven by increased network activity and Total Value Locked (TVL), accompanied by successful airdrops within the Solana ecosystem.
6. Q: Why did the crypto market experience a minor correction in the past two days?
A: Experts suggest profit booking as a possible reason for the correction, a common market response after significant price surges.
7. Q: What are the concerns raised by analysts about the current market situation?
A: Analysts express caution about a potential bull trap, indicating the need for vigilance among investors. Short-selling concerns are also mentioned unless ETF approvals materialize.
Conclusion
The cryptocurrency landscape, as highlighted by recent developments in Parliament and market dynamics, is undergoing significant shifts. The increasing registration of virtual digital asset service providers, coupled with the bullish trends driven by ETF optimism, paints a picture of a dynamic and evolving market. As investors navigate potential corrections and regulatory developments, the sustained market momentum remains a focal point for industry observers.
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