The crypto market has been experiencing wild price swings this year, and it’s not surprising that it has been falling for months. The market is currently down more than 80 percent, with Ethereum and Bitcoin leading the way. It’s been a turbulent year for the cryptocurrency world. Investors have been moving away from riskier assets, like technology stocks, as they brace for a tighter Federal Reserve monetary policy. Furthermore, speculation has been rampant, with Russian central banks recently announcing that they are banning mining and using cryptocurrencies.
The cryptocurrency market is becoming increasingly volatile, and some analysts are saying that investors should be careful. As prices soar, many amateur investors will try to ride them to the top. Professional investors, on the other hand, may panic sell when things turn bad, which can erode gains. Some cryptos are even crashing by 50% overnight. If you’re in a position to hold onto crypto, consider selling at the top of the hype.
Moreover, cryptocurrency prices have reached a mature point, which means that price crashes are normal. It’s normal for prices to drop by 50 percent over night. Some argue that such fluctuations are bad, but this is not true. The market has always rebounded from major crashes. The instability is necessary for high growth. In addition, the price crash was the only way to get the right price for a particular cryptocurrency.
Despite the fact that the market is volatile, you shouldn’t let that discourage you from investing. The price fluctuation is normal in this industry. While the volatility is difficult for individual investors, it is still worth it for those who believe in its potential. It feels inevitable, a rebuke to the banking system. The emergence of crypto is the perfect rebuke to our bankers. The rise of cryptocurrency is an incredibly exciting one.
While the crypto market is known for its extreme volatility, the recent coronavirus has fueled the downfall of several of the hyped digital currencies. This virus has caused the market to roar in the past, and the new Chinese regulations have only made this trend even more unpredictable. The rebuke has prompted regulators to step in and regulate cryptocurrency. However, it is not yet clear whether this will happen for the rest of the world.
Despite the increased regulation, scams continue to thrive in the crypto market. During the past week, a ponzi-scheme in bitcoin was revealed, and the prices of other coins fell as well. Unlike traditional finance, crypto has less regulation than traditional currencies, and it’s easy for fraudsters to manipulate investors. In addition, the ponzi scheme is often easy to spot.