The current year, 2022, has not been much profitable for the cryptocurrency world and conversely, the digital token world has seen more crashes than gains. After months of Covid-19 wave and ongoing war, the global cryptocurrency The market seems to be losing ground, having fallen below the $1 trillion mark since January last year. crypto investors Have a low risk appetite and their fear level has exceeded expectations.
Bitcoin, the world’s largest cryptocurrency, has given up most of its gains to hit an 18-month low at the $22,000 level on Tuesday, June 4. Bitcoin has lost more than 25 percent in the past week. On the other hand, Ethereum, the world’s second most popular cryptocurrency, fell more than 33 percent over the past week to hang at the $1,100 mark.
why is cryptocurrency Market wobble?
The cryptocurrency market largely mirrors the global stock markets, and the selloff in traditional markets on Friday, June 10 created a contagion, as crypto began to decline sharply. The CoinDCX research team said, “Rising expectations of a sharp hike in the Federal Reserve’s interest rate to fight inflation have eroded the risk appetite of investors across the board, with many indices officially entering a bear market. ” Market sentiment has plummeted to a new fear level of 8, the lowest in nearly two years.
“The crypto markets have seen a correction due to weak global cues. Internationally, the stock and crypto markets have become highly correlated. Inflation rate at the global level has also been a major concern for investors. In the US, it is at a 40-year high of 8.6% and in the UK at 9%; Interest rate hikes in major crypto countries are also a growing concern as they reduce liquidity. Rajagopal Menon, Vice President, WazirX, told News18.com that both the indicators have led to a massive sell-off.
The ongoing sell-off will depend on the Fed’s rate revision announcement. “Most investors will be looking forward to the US Federal Open Market Committee meeting on June 14 and 15. Interest hikes are already priced by the Fed; However, most investors worry that unless inflation numbers start falling soon, the Fed will have to rule at a faster rate than anticipated,” said Darshan Bathija, CEO and co-founder of Wold.
What’s Next for Cryptocurrency Investors
Experts said that the cryptocurrency has entered bear markets for the time being but expects the price to rise eventually. “Such corrections we saw in the previous years, followed by prices at all-time highs. High-priced investors are the ones who panic when prices fall, but they must remember that we are in a bear market and eventually the prices will rise again,” Kumar Gaurav, CEO and Founder, Kasa, told News18.com. Told.
Suman Banerjee, CIO of US-based hedge fund Hedenova, said new investors should wait for a predictable ‘crypto winter’ and invest at that time to make maximum returns. “I think we will see a crypto winter, as happened between 2017 and 2020. I would advise new investors to wait for that time and play the momentum when bitcoin prices rise again.”
Gaurav, however, advised new investors to buy in the fall. “Everyone who is interested in crypto but has not invested yet should do their own research and find out which is the best time for them. Right now they can get bitcoin or other cryptocurrencies at a discounted price. can,” he said.
read all breaking news , today’s fresh news watch top videos And live TV Here.