The cryptocurrency market saw minimal movement over the weekend, with major digital assets, including Bitcoin and Ether, showing only modest changes. As of Monday, February 17, Bitcoin, the world’s leading cryptocurrency, experienced a 1.55% dip on international exchanges, bringing its price down to approximately $96,019 (which makes up about Rs. 83.2 lakh INR), according to data from CoinMarketCap. A similar trend was seen on Indian exchanges, with Bitcoin trading at $99,734 (roughly Rs. 86.5 lakh), reflecting a 1.50% decline over the past 24 hours.
Bitcoin Faces Critical Support Test
The sluggish price action comes as Bitcoin tests the critical support level of $96,200 (roughly Rs. 83.4 lakh) once again. Analysts are closely watching this level to gauge whether the digital asset can hold its ground or if it will continue its downward slide. Experts from CoinSwitch’s markets desk suggest that if Bitcoin can maintain its position above this threshold, there could be a small relief rally before the next significant market move.
Bitcoin’s struggles over the weekend reflect a broader trend in the crypto space, where altcoins have also remained under pressure. The second-most valuable cryptocurrency, Ether, has not fared much better. It saw a price decline of 1.15% on international exchanges, dropping to $2,666 (roughly Rs. 2.31 lakh). In India, Ether saw a slightly steeper drop of 1.30%, trading at $2,664 (roughly Rs. 2.31 lakh). Despite its status as the top competitor to Bitcoin, Ether has failed to gain significant momentum, mirroring the lack of bullish sentiment in the market as a whole.
Regulatory and Legal Challenges Weigh on Market Sentiment
The slow-moving market can be attributed to several factors currently affecting investor sentiment. On a global scale, there are multiple developments keeping volatility high, with no clear direction for the market in the near term. One such event is the ongoing efforts by Grayscale and the New York Stock Exchange (NYSE) to push for the first-ever US Cardano ETF filing with the Securities and Exchange Commission (SEC). This move seeks to list the Grayscale Cardano Trust, a development that has garnered significant attention in the crypto community. However, such filings often take time to process, meaning it could be months before any major shifts in investor sentiment are seen.
Meanwhile, in Argentina, legal issues have surfaced that further cloud the market’s outlook. Argentine lawyers have filed fraud charges in criminal court against President Javier Milei, who recently launched the LIBRA memecoin and then disowned it, further complicating the already tumultuous relationship between regulators and the cryptocurrency sector. This scandal has raised concerns about the risks associated with new and untested cryptocurrencies, which could deter potential investors from entering the market.
On the regulatory front, India has made headlines with its crackdown on fraudulent cryptocurrency schemes. Authorities have seized cryptocurrency assets worth nearly $190 million (roughly Rs. 1,647 crore) linked to the infamous BitConnect scam, which defrauded 4,000 investors across 95 countries back in 2018. This seizure highlights the ongoing challenges in the global crypto market related to scams, frauds, and regulatory uncertainty. For many investors, the specter of such risks can dampen enthusiasm for the market, contributing to the overall lack of momentum observed over the weekend.
The collective effect of these events has been a lack of the bullish momentum that typically characterizes cryptocurrency markets during times of growth. With Bitcoin holding steady at the $96,000 mark and Ether also showing little movement, it is clear that the market is in a holding pattern, awaiting new developments that could potentially spark a more decisive shift in prices.
For traders and investors, the near-term outlook remains uncertain. While there is some optimism that Bitcoin could see a small rally if it manages to maintain its support at $96,200, many are cautious about making large bets given the current regulatory and legal challenges facing the market. As always, the cryptocurrency landscape remains volatile, and it is likely that the coming weeks will be marked by further fluctuations in price as the market absorbs these ongoing developments.
