The recent sell-off in the cryptocurrency market has taken a toll on investors as the industry's market cap has reduced by more than $2 trillion. The carnage was so intense that major cryptocurrencies, including giants like Bitcoin and Ethereum, fell in value by up to half from their peak, while other altcoins suffered more.
Main Reason behind THE FALL:
Fed rate cut signals, rising bond yields, crackdown signals and tightening regulations weighed on crypto market sentiment.
Cryptocurrency used as an unregulated commodity is rapidly depleting. Regulatory efforts have skyrocketed as countries around the world take a more serious and cautious stance.
The current weakening of the cryptocurrency market is not specific to crypto industry. All around the world, financial markets have taken a hit, turning its sentiment towards the digital token market.
After all, crashes are common in crypto markets. We saw massive crypto crashes in Q1 2020 and again in 2021. Whenever crypto market crash occurs, people worry that they are dead. The market recovered from each crash and reached new highs. Critics say crypto returns could be unlikely to be repeated. However, despite the current downtrend in the cryptocurrency, there are clear signs from supporters that the sector will get stronger.
So which group is right?
Decide yourself!!!
I have few something to say:
“Cryptocurrency may not yet be the standard for payment and value exchange, and the technology behind it, blockchain, is rapidly becoming the standard in various sectors of industries and metaverse economy. This decline has led to fears that a "cold crypto season" is underway that is seen after the bull market massive rally in 2017. But as per the technical analysis the RSI indicator suggests that the risk and reward are advantageous to buys in this area.”
Sooner or Later cryptocurrency will explode again as The Future of crypto is linked with the Metaverse project Now!!!
Metaverse is a Limitless, 3D, digital virtual world where anyone can enter by just typing its credentials on internet, just like we are login into our online account. The economy of metaverse thrives through the cryptocurrencies which is based on the Decentralized technology, most virtual worlds have their own tokens in the form of cryptocurrencies or NFTs, and It can also be exchanged for any country currency.
Will the crypto market recover, when and is now a good time to in or out?
It's the inquiry all the rage right now.
Investing in the cryptocurrency and waiting for regulatory clarity from the Federal Reserve to stabilize the cryptocurrency will require some patience. Despite many doubts and fortune tellers, the cryptocurrency market continues to develop and thrive. Although prices have fluctuated significantly and, in some cases, have fallen sharply, the sector is finally starting to stabilize and appears to be getting out of its infancy more and more. It will remain a central topic of the tech conversation as more companies discover how to use cryptocurrency and blockchain and more users embrace it as a way to simplify their lives.
In finance, the term “dead cat bounce” is used to describe a short-term recovery from a long-term downturn. They usually appear as small rallies after sustained price declines. At first, the price bounce appears to reverse the dominant trend, but soon followed by a downward movement in the price. The current cryptocurrency crash occurs amid a sharp decline in all speculative assets.
There have been many twists and turns in the cryptocurrency market, and it has rebounded every time.
It will Bounced Again for Sure!!!