The cryptocurrency market saw a sell-off in the last one week, mainly owing to the outbreak of conflict between Israel and Hamas in the Gaza Strip. On Friday, Bitcoin was trading at $26,800, down over 3 per cent in the last one week. Ethereum was down 5.2 per cent and was trading at $1,549, according to CoinMarketCap. Most of the crypto tokens like Solana, Cardano and Ripple were trading in the red too.
“Crypto markets were trending downwards last week as the world witnessed a rise in tensions amidst Israel and Palestine, sending global investors into a risk-off mode,” said Parth Chaturvedi, investments lead at CoinSwitch Ventures.
“Overall the global crypto market cap fell just below the $1.1 trillion mark, as all major crypto assets witnessed a sell-off, with both Bitcoin and Ethereum following over the course of the week, trading below the $27,000 and $1,600 levels, respectively.”
“Ethereum’s performance is at its weakest since March 2023, with its trading value resting above $1,500,” said Edul Patel, chief executive officer of Mudrex. Ethereum’s price fall was steeper as investors reacted to the Ethereum Foundation’s bulk sale of the token for operational use.
According to the research team of CoinDCX, higher-than-expected US inflation also resulted in a sell-off pressure in the market. US inflation rose 0.4 per cent month-on-month (M-o-M) in September, higher than the expectation of 0.3 per cent.
“This decline was due to a cautious market mood, influenced by a slightly higher-than-expected inflation report, which led to increased US Treasury rates and a stronger dollar,” it said.
“Bitcoin will now need to breach the $26,900 resistance or potentially discover support near $26,500,” added Patel.
Another major development, the G20 Finance Ministers and Central Bank Governors (FMCBG) under India’s presidency, released a joint communique in Marrakech, Morocco. It adopted the roadmap proposed in the Synthesis Paper as a G20 Roadmap on Crypto Assets and to collectively mobilise more headroom and concessional finance to boost the World Bank’s capacity to support the low and middle-income countries to meet the global challenges.
In a post on social media platform X, the finance ministry said, “In the spirit of #OneEarthOneFamilyOneFuture and following full consensus by the #G20 members, the fourth #G20 Finance Ministers and Central Bank Governors communique was adopted today in #Marrakech, Morocco.”
Industry welcomed the development.
“The adoption of the G20 Roadmap on crypto assets by the FMCBGs represents a progressive stride in fostering international collaboration for the regulation of crypto assets. This comprehensive roadmap can guide and shape global policy, evolve risk-mitigation strategies, and establish adaptable regulations for the dynamic crypto market. It emphasises addressing the distinct challenges encountered by Emerging Markets and Developing Economies, reflecting a forward-looking approach to a rapidly evolving financial landscape,” said Patel.
“Ahead of Financial Action Task Force’s India mutual evaluation next month, G20’s support to global implementation of FATF standards on crypto-assets is welcome,” added Ashish Singhal, co-founder and CEO of CoinSwitch in a post on X (formerly Twitter).
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