As crypto takes a tumble with Bitcoin falling close to 8% touching down to nearly US$20,000, its lowest value in seven months, panic has ensued among investors. Some might see a silver lining in the mess.
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What we are witnessing right now in the crypto market is a combined effect of multiple factors, says Kumar Gaurav, Founder and CEO of Cashaa, a bank that combines crypto and fiat currency.
Investors must understand that the market will present itself in different ways, sometimes it is bullish while at some point, it can be bearish too
“International affairs are under stress globally, associated rumours are doing rounds, some companies are accepting crypto while some are taking dissenting steps. This market behaviour applies for any sort of investment for their own set of influential factors,” he says.
He adds that this can be an opportunity for many.
“Investors must understand that the market will present itself in different ways, sometimes it is bullish while at some point, it can be bearish too. This can be seen as an opportunity by those who were waiting for the right time to invest in their projects of interest. They must study the projects and invest accordingly in the ones where they see a potential. Additionally, keeping a futuristic approach is a must.”
The US Federal Reserve is expected to raise interest rates today, the factor that has led to a spooked market with traders scrambling to sell off assets, says Daily Mail. US inflation rates are the reason for the current crash that experts are pointing to in this crypto crisis.
Just this morning, Bitcoin crashed to a new 18-month low with no respite in sight throughout crypto markets. Traders are in a nail biting state watching to see if the numbers drag down below the US$20,000 benchmark. Not just Bitcoin, but the digital coin Ethereum too dropped almost 32 % in the last few days.
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It was just March when Bitcoin was soaring close to US$45,000, the total market cap for crypto past US$2 trillion, according to CoinGecko data. There was a flurry of activity after the Russia Ukraine war started. Bitcoin had been enjoying an almost 14% spike and ether 12%.
However, the cryptocurrency market has been notorious for its volatility, a strong reason that many refrain from investing in virtual currencies despite stories of investors gaining riches in extremely short periods of time. Experts are saying that a few more months of pain remain for crypto investors, so they must be patient as the current wave of crisis dies down.