Indian investors are advised to avoid exposure to new, untested cryptocurrencies

Bitcoin and Crypto Market Watch Tuesday, November 02, 2021 - 18:47

The cryptocurrency ecosystem is in a celebratory mode as Bitcoin (BTC) registers its highest monthly close ever. BTC rallied 40% during October to end the month at the price of $61,300. Ethereum (ETH) also followed in the footsteps of the market leader to gain over 40%, making a new all-time high at $4,460 in the process last week. The total market capitalization currently stands at $2.7 trillion, with BTC dominance at 43.7%. In this article, we look at the major price trends that impacted the crypto market in the last one week.

Bitcoin consolidates while Polkadot and Binance coin surge

BTC had a tumultuous week as it tested its crucial support at $57,800 before bouncing back above the psychological barrier of $60,000. BTC has gained just 1% in the last seven days to trade currently at $63,200. It continues to consolidate around the resistance level of $63,000 while it enjoys support near $61,000.

ETH is currently trading near $4,440 just a few dollars shy of the all-time high it registered on October 29. The market sentiment remains bullish for ETH as we head into the latter half of this quarter.

Binance coin (BNB) continues to hold the third spot after gaining 12% in the past week while Cardano (ADA) continues to consolidate just below the crucial level of $2. ADA needs to hold $1.8 in order to avoid a further downtrend.

Polkadot (DOT) made a new all-time high with a 17% jump in the last 24 hours ahead of its much anticipated parachain auctions update. Parachain auctions let developers win a chance to deploy decentralised apps (Dapps) on the DOT blockchain. These auctions have been in development throughout 2021 and their launch on November 4 has driven the DOT price to $52.1 today. 

In the top 20 cryptocurrencies list, Shiba Inu (SHIB) continues to hold just above Dogecoin (DOGE) in the 9th place with a weekly gain of more than 60%. Polygon (MATIC) has rallied by 9% overall last week with a 20% green candle on October 28 before retracing some of its gains.

A word of caution to investors

A few days back, a play-to-earn platform called Squid Game project was launched on the Binance Smart Chain inspired by the Netflix show. The gameā€™s token SQUID gained popularity and was up by 35,000% in just three days despite drawing skepticism from analysts. The token had an inherent inability for buyers to sell them in the open market. The developers behind the project eventually sold their tokens for over $2 million causing the price to crash by 99.9% in just 24 hours.

Indian investors are advised to avoid exposure to new, untested cryptocurrencies in the hope of an astronomical gain. Always invest in blue chips such as Bitcoin, Ethereum or trust the coins launched in the top Indian exchanges which would have done the due diligence required before listing them.

November Outlook

November has been historically a good month for the cryptocurrency market. According to analytics firm Glassnode, BTC reserves on exchanges are at their lowest level in three years which indicates that supply squeeze is likely to happen when demand rises during November. Analysts expect Bitcoin to surge and close above $70,000 this month. A few altcoins may gain disproportionately given the bullish sentiment prevailing in the broader market.

Disclaimer: This article was authored by Giottus Cryptocurrency Exchange as a part of a paid partnership with The News Minute. Crypto-asset or cryptocurrency investments are subject to market risks such as volatility and have no guaranteed returns. Please do your own research before investing and seek independent legal/financial advice if you are unsure about the investments.


Become a TNM Member for just Rs 999!
You can also support us with a one-time payment.