Crypto wrap: RBI MPC unlikely to impact global crypto prices, say experts

business-standard.com:

The cryptocurrency market traded flat in the last week, even as major cryptocurrencies traded in the red. The market capitalisation stayed above $1 trillion. However, major digital tokens like Bitcoin and Ethereum fell by over 3.5 per cent.

On Friday at 4 PM, Bitcoin had the highest market cap and was trading at $23,157, over 3.6 per cent below the price seven days ago. However, in the last 24 hours, it gained over 1 per cent.

Ethereum, the second largest cryptocurrency, was trading at $1,661, 2.27 per cent up in the last 24 hours. However, in the last seven days, it has fallen 3.7 per cent.

On Friday, the Reserve Bank of India (RBI) hiked the repo rate by 50 basis points to 5.4 per cent to control the surging inflation. In India, inflation has stayed above the upper tolerance level of 6 per cent for six months.

However, the rate hike by the RBI is unlikely to impact the crypto prices in India, according to experts.

"RBI's MPC meetings on a standalone basis have very minimal or no impact on the global cryptocurrency markets. Historically, Bitcoin prices always react to US FOMC meeting outcomes." Jaikrishnan G, Partner, Financial Services Consulting, Grant Thornton Bharat, said.

He continued, "On a macro-level, all the major economies have hiked the policy rates lately so as to control inflation and this is bound to have a short-term negative effect on crypto prices."

Experts still ringing bells of caution

Global inflation has continued to stay high. Even after cooling off marginally, the commodity prices haven't reached the same levels as six months earlier. Experts believe that investors still need to be cautious.

"We are expecting a range-bound movement in the crypto market but something negative in terms of