Crypto Market today: Bitcoin, the world’s largest cryptocurrency by market value, broke more than 7 percent on Monday and reached its lowest levels since July. The risk-averse asset was the most negatively impacted and there was heavy selling due to fear of Russia attacking Ukraine.
At present, bitcoin is seen with a decline of 6.8 percent at $33820. It is down nearly 50 per cent from its all-time high. Significantly, in the month of November itself, bitcoin touched an all-time high of $ 69000.
It is worth noting that at this time bitcoin seems to be moving in step with the stock market. Never seen this before. Experts say that this correlation of the two could also bring some relief for the world’s largest cryptocurrency when the stock market rises.
Strategists at Yardeni Research say that the situation of bottom out is visible in the equity market. Now after the recent decline, it may once again see an uptrend. Such a rally in the equity market could also fuel the excitement of bitcoin and other cryptocurrencies, at least for the time being.
Peter Berezin of BCA Research Inc says that in the coming months, we may see a recovery in the stock market. The reason for this is that the bond market seems to be more stable and the earnings of companies seem to be increasing steadily. The reason for this is the recovery in the global economy. He further said that this may also give an immediate boost to the crypto market.
CryptoCurrency Investment: Investing in crypto is a way to become a millionaire overnight or a game to lose capital, what is it?
Cryptocurrency is a type of digital asset. Crypto is used for shopping, services in many countries. Cryptocurrency cannot be printed as notes or coins. There is no bank or ATM for cryptocurrency. Crypto can only be used for online purchases.
Disillusioned with Elon Musk
Until a few months ago, Akash Anand, who lived in East Delhi’s Mayur Vihar, considered Tesla owner Elon Musk as a visionary. Akash believed that Elon Musk was a tech-based medium and financially Can lead the world as a secure future. Now they don’t feel that way. Recently, Elon Musk refused to accept bitcoin to buy a Tesla car due to environmental concerns. Since then, Bitcoin has seen a huge decline. In mid-May, there was a strong weakness in all cryptocurrencies around the world.
Black May for Bitcoin
The month of May has been nothing less than a nightmare for an investor investing in cryptocurrencies. Between May 13 and May 20, the value of crypto holdings of investors has decreased by 60%. Many investors’ investment of ₹ 55000 remained only ₹ 20000. Due to the sudden turmoil, many investors sold their bitcoins. Investors believe that Tesla owner Elon Musk has behaved irresponsibly and has played with the sentiments of millions of investors. Due to such statement of Elon Musk, the wealth of investors has sunk.
market cap of cryptocurrencies
The market cap of cryptocurrencies has crossed $1,635 billion. The market cap of bitcoin has reached $674 billion. This is 3 times the market cap of the country’s richest company Reliance Industries Limited (RIL). Ethereum, the world’s second largest cryptocurrency by market cap, was trading up 1.3 per cent at $2,103. Its market cap was $244 billion.
Stock-crypto statistics in India
If we talk about crypto trading in India, then its daily turnover is close to ₹ 1500 crores. The daily trading volume of stock exchanges in India is close to two lakh crore rupees, of which less than 1% crypto trading is being done. The number of active investors investing in cryptocurrencies in India is 10-12 million. The number of active investors investing in the stock market in India is close to 60 million.
Time is not fixed in crypto trading
Trading takes place in the cryptocurrency market all the time. This market is open on Saturdays and holidays also. Generally, the share and bond markets in India open daily from 9:00 am to 3:30 pm and are closed on weekends as well as holidays. After Elon Musk’s tweet on bitcoin, the price of the cryptocurrency has fallen by up to 50 percent. Tesla’s Elon Musk had said that Tesla would not accept payment in bitcoin. Along with this, MUsk had said that it is not possible to compensate for the damage caused to the environment due to crypto mining.
Panic selling increased trouble
Along with Tesla’s U-turn on Cryptocurrency, the Chinese government also started cracking down on institutions dealing in Cryptocurrency. Due to both these reasons panic selling started in crypto currency. Many investors also started booking profits from crypto on this occasion, which worsened the situation of the crypto market. Because of this, crypto investors suffered huge losses.
Eye shining with great returns
The price of crypto has increased a lot in the last 1 year. Because of this, the expectations of the investors have increased significantly. Investors who had invested in crypto currency 1 year ago, their money has increased up to 10 times. Even after the weakness in Bitcoin in May, the returns from it have been around 400% compared to 1 year ago. Dogecoin is trading at 140x from June 2020 level. Matic network has increased by more than 7000 percent.
There are many risks in investing
If you are also planning to invest in crypto currency, then there are many dangers in it. The price of crypto currency can fluctuate very fast. In India, the regulator has not approved crypto. Along with this, it is not gaining acceptance among investors due to the threats related to cyber security and the uncertainty surrounding the use of crypto currency. The Reserve Bank of India (RBI) has banned crypto and has asked banks and fintech companies to stop serving entities dealing in virtual currency (crypto).
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