The latest sell-off in the cryptocurrency market was a significant blow to investors, wiping nearly $1 trillion from the industry’s market capitalization, reports Oakland News.
The devastation was so severe that large cryptocurrencies, such as Ethereum and Bitcoin, lost up to half of their value since their peaks, while minor altcoins suffered even more.
The Federal Reserve’s tapering indications, rising bond yields, crackdown signals, and regulatory strictness weighed on the crypto space’s views.
The crypto community’s world appears to be coming to an end, and the crypto market appears to be a dead rubber. The digital token market was back in the red Monday afternoon after a brief recovery.
The crypto market has been on the down recently, according to WazirX Trade Desk, but it’s too early to declare the crypto market dead.
Intel is entering the Bitcoin mining market, with plans to present a bitcoin mining chip, and roughly 300 institutions are going to launch bitcoin trading in the first half of 2022, according to his reasoning.
“Microsoft has purchased Activision, a top game producer in the globe, reinforcing its focus on the ‘Metaverse,’ while Instagram aims to integrate NFTs and Twitter is rolling out NFT verifications,” the company noted.
Market Experts Say
According to market experts, the recent drop in the crypto market is not an industry-specific occurrence. Financial markets have taken a hit across the board, causing jitters in the digital token area.
Unfortunately, crypto is still highly associated with the stock market, and whatever occurs in the stock market will eventually affect the crypto market, according to Edul Patel, CEO, and Co-founder of Murex.
“Fears of a rate hike by the US Federal Reserve have put financial markets on edge,” he continued. The Governmental Reserve’s two-day policy meeting begins on Tuesday, and the crypto community will be paying close attention.
However, China’s rate decrease stunned the markets, since the world’s second-largest economy’s property developers have begun to implode. It’s an attempt to boost domestic stock markets.
Market experts believe the cryptocurrency market will not fall further from its current level, putting to rest the notion that the market is dead.
According to market analysts, when the fundamentals maintain or improve amid a dropping market, it is a possibility rather than a threat.
Since last year, the crypto market has suffered several large and little drops, but it has always come back, according to Gaurav Dahake, CEO and Founder of Bitbns.
The stock exchange has also underperformed in recent months, but investor trust in it remains high, he noted. “It is necessary to exercise patience while investing in bitcoin and wait for regulatory clarification from the Fed, which would stabilize cryptocurrency.”