Cryptocurrency prices weakened on Tuesday as the virtual coin market saw increased profit-booking by investors. However, analysts suggest that the consolidation is minor and virtual coin markets will not witness a major impact due to it.
Bitcoin, the world’s most popular cryptocurrency was trading at $38,582.30, down over 2.5 per cent at 2:05 pm. Bitcoin’s market capitalisation fell sharply to $724.36 billion.
Meanwhile, Ether fell over 3.5 per cent to trade at $2,487. The second-most popular virtual coin’s market capitalisation fell to $290.85 billion. Most other popular cryptocurrencies fell including XRP, Cardano, Dogecoin, Polkadot and Litecoin.
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CRYPTO OUTFLOWS FOR 4 WEEKS IN A ROW
The cryptocurrency market has witnessed a sharp recovery over the past two weeks but encountered outflows for the fourth consecutive week. A bulk of the outflows came from Bitcoin products, suggests data from digital asset manager CoinShares.
Cryptocurrency outflows hit $19.5 million the week ended July 30, with Bitcoin reaching $19.7 million in outflows. However, some virtual coins such as XRP and Polkadot saw minor inflows during the week.
Commenting on the weakness, Edul Patel, CEO and Co-founder of Mudrex, a global algorithm based crypto trading platform, said, “The cryptocurrency markets consolidated over the past 24 hours. Most of the major cryptos saw some profit booking.”
“After 12 successive green candles, ETH declined by around 4.2%. It is still a minor profit booking and not a selloff as the traded volumes have remained constant over the past 24 hours,” he added.
“Such consolidations help