โI started investing last year after being influenced by friends and business associates,โ said Gopala Somani, a Delhi-based crypto investor. โI kept investing even until the last week, thinking it was time to buy the dip. But now I'm stuck. My portfolio is low and in the red. If I sell, it will be a significant loss.โ
Bitcoin was trading at $35,572, while other major altcoins also down by double digits, at 5 p.m. on Saturday, the base of coins. Bitcoin has fallen 17% in the last week, Ethereal 26.66%, Binance Coin 28.74%, Cardano 19.43% and Solana 31.90%. The popular currency of memes, shiba Inu is down 30.03% while DogeCoin is down 32% in the last seven days. As of 5pm on Saturday, the Coinable website said the overall market was down 12.19%.
Bloomberg reported that the latest crash wiped out more than $1 trillion in crypto market value.
A number of Indian crypto investors, such as Somani, are panicking as the extreme volatility the asset class has exhibited in recent days has drastically eroded the value of the portfolio and many are in the red after having invested in the coin during the run. 2021 bullish.
โSeasoned investors expected this correction, but the average investor did not. The charts were showing bearish patterns. Most of the people who got into crypto last year are lost. Now they are trapped. They can't buy a dip because they don't have money and they don't want to sell to incur big losses. Currently, it is a bekaar hai crypto phase,โ said Vishal Gupta, a popular crypto commentator. โThe Indian masses had unrealistic expectations of cryptocurrencies. Many Indian investors were guided by the announcements put out by the exchanges."
Crypto experts say that investors should carefully assess the current price drop and that the volatility should not scare them.
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"We need to have a bird's-eye view of global financial markets to get a true picture," said Jay Hao, CEO of OKX.com, the world's second-largest website. cryptocurrency exchange. โFinancial markets around the world are under tremendous pressure due to rising inflation and the tight monetary policies of powerful nations like the US. Every market is going through a correction phase, and the crypto market is going through a correction phase. after hitting the $3 billion mark in November of last year.
The sharp drop in Bitcoin, the world's largest cryptocurrency by market capitalization, is especially worrying for serious investors. But market watchers say investors shouldn't panic.
โBitcoin peaked twice above 60k in 2021 and retraced to January 2021 average traded rate. Bitcoin price is still well above 2020 highs where the bull run began,โ Praveen said. Kumar, founder and CEO of Belfrics Group. . โIf market sentiment remains weak, there could be a pullback to test various levels of technical support and a physiological $30k level.โ
BuyUcoin CEO Shivam Thakral said investors should see the drop as an opportunity to buy more assets. โIt was January 15, 2021, when Bitcoin was hovering around $36,000, so its current drop in price seems more like an opportunity than a crisis,โ he said.
A combination of factors is weighing on the crypto market: tightening monetary policies by central banks, regulatory confusion, a prevailing sell-off of assets such as stocks, inflation concerns, and Omicron-related uncertainty. โGlobal investors appear to have reduced their appetite for risk,โ said Gaurav Dahake, CEO and founder of BitBns.
On Thursday, it was the Russian central bankโs proposal to ban the use and mining of cryptocurrencies that spooked the crypto market, while Fridayโs correction was due to a sell-off in US tech stocks. The Nasdaq Composite fell a 2.7% to 13,768.92 on Friday.
Experts said that there is a strong correlation between tech stocks and Bitcoin. The other coins broadly mirror Bitcoin.
Bloomberg reported that the 100-day correlation coefficient between Nasdaq and bitcoin hit 0.40, a reading that is among the highest since 2011. "The correlation between the crypto market and other speculative markets has resulted in widespread losses," Dahake said. .
Crypto investors are also looking with interest at tech firm Microstrategy's dispute with the Securities and Exchange Commission after the US regulator rejected the company's Bitcoin accounting strategy. The company owns 124,391 Bitcoins and its CEO, Michael Saylor, is one of the currency's biggest corporate cheerleaders.
Last year was a landmark year for digital currencies in India as cryptocurrencies became part of the lexicon of Indian investors. According to industry sources, around 20 million people in the country joined the crypto bandwagon in 2021, with Indians holding $5.3 billion worth of crypto assets.
A bull run that saw currencies hit all-time highs, high returns on initial investments by early investors, high-decibel advertising campaigns by exchanges, and aggressive campaigns by social media influencers all contributed to India becoming became the fastest growing crypto market in the world last year. .
CryptocurrencyโPriceโPerformance in the last 24 hours
Bitcoinโ$35,572 - (-8.46)
Ethereumโ$2447.95โ(-14.59%)
Binance Coin- $343.48 - (-17.37%)
Solana-$98.02โ(-20.55)
Cardano-$1.02โ(-17.39%)
Polka Dots-$18.69โ(-16.79%)
Avalanche-$58.17โ(-23.63)
Shiba Inu-.00001920โ (-25.58)
Matic-$1.54โ(-18.23)
*Saturday 5pm, Coinbase
