New Delhi: Major cryptocurrencies were bleeding on Tuesday. All the top 100 digital tokens were trading in the red at 9.30 hours IST, highlighting the gloom in the crypto market. Binance Coin, Ripple, Ethereum, Dogecoin, Polkadot tanked 8-13 per cent.

The global crypto market cap plunged to $1.19 trillion, a 7.48 per cent decrease over the last day. The total crypto market volume over the last 24 hours was $62.12 billion, increased by 27.76 per cent.

The retreat comes amid a broader risk-off environment that’s also seen US equities fall due to fears of slowing growth and a relentless spread of the delta variant of Covid.

The Turkish Ministry of Treasury and Finance, announced that a draft bill to create a legal framework for crypto assets is ready for discussion. This comes shortly after El Salvador legalised Bitcoin, and Paraguay has also shown a keen interest in doing so.

Deputy Minister Sakir Ercan Gül announced that the crypto bill would be presented to the Grand National Assembly of Turkey, at the start of the next legislative year, which is October 2021.

Zebpay Trade Desk said that the hope of a friendly approach to regulation is high, as doing so would make the country an attractive investment source for leading crypto exchanges across the globe.

“Bitcoin has taken a beating this week, as it fell below $31,000 on Monday evening,” it added. “The most likely general explanation is of the Grayscale Bitcoin Trust, which on Sunday saw a 16,000-BTC unlocking event, which a day later negatively impacted the market.”

The central bank of Turkey had previously banned the use of cryptocurrencies as a means of exchange, and prevented banks from providing deposit and withdrawal services to crypto exchanges. The new legal framework is also likely to put several protective measures, such as security clearance and collateralizing in place.

Tech View by Giottus Cryptocurrency Exchange
Polygon Network (MATIC) has appreciated more than 100x from the start of the year to its new all-time high (ATH of $2.7). MATIC has been in the accumulation phase for months. After breaking out, it zoomed past previous highs in longer time frames and seemed unstoppable until the bearish trend on Bitcoin (BTC) started in May.

On shorter time frames, MATIC has been forming a descending channel, a temporary bearish pattern while the long-term picture remains bullish. MATIC enjoys a strong support zone. It has closed below the EMA20 while the RSI indicator is in the oversold territory, meaning that there are no indicators for a breakout from the channel for now.

Once BTC starts to regain lost momentum, MATIC will hopefully start its uptrend towards its ATH. MATIC is in a consolidation phase after an aggressive pump, and therefore it could be another buying opportunity for investors who missed out on the window earlier.

Major Levels:

Support: $0.7, $0.61, $0.55

Resistance: $0.88, $1.04, $1.1

(Views and recommendations given in this section are the analysts’ own and do not represent those of ETMarkets.com. Please consult your financial adviser before taking any position in the asset/s mentioned.)