Maybe, currently, it’s the time when grown-ups take charge. The downfall in crypto markets gave a remarkable hit to peddlers of crypto tokens. Even more, the threat of greater regulation has sparked the current sell-off.
Overall, the latest downfall in the crypto market is a wake-up call for its regulators and investors.
Before anything else, let’s get into the details of this downfall and possible solutions to comeback below.
The latest downfall in the crypto market
In cryptocurrency investors’ lives, there comes a time when they see their money’s significant amount disappear within a few hours or days. Even more, often this wait is not so long. It is because cryptocurrency crashes are pretty common.
Something similar just happened in the previous week when bitcoin collapsed by 50%. The price of bitcoin collapsed to $30,000 from its high close rate of $65,000 last month shortly after 9:00 am. Wednesday morning was having a drop of about 30% from the last day. It dragged down the rest of the cryptocurrencies as well.
With this, every single of the numerous cryptocurrencies goes down an average of above 20%. So, this is the type of carnage that has made crypto markets just like the stock exchange ticker on Black Monday.
According to Otu,Andiong the cryptocurrency market is in a soured mood. It is mainly because of a brutal institutional sell-off. Even more, it is leaving retail traders to cope with significant losses. However, you can’t call it anything but a crypto market crash.
What has caused the sell-off?
Bitcoin sold off sharply last Wednesday. This slump is showing a downtrend in the number 1 crypto of the world. Bitcoin is undoubtedly the most popular yet preferable cryptocurrency. This crypto token has been growing tremendously for the past 10 years, and so, industry specialist Otu,Andiong told.
With an almost 50% drop in the price of bitcoin, there was even a 20% fall in the price of Ethereum as well.
• With bitcoin sneeze, the remaining crypto complex also catches a cold. The most dominant digital assets have become a gauge of sentiment in the nonconventional market increasingly. However, it also has a measure of risk appetite even broadly.
• Even though bitcoin is an asset known for its higher volatility, people are still wondering about the bitcoin market’s recent crash.
• However, when it’s about the current slump of the crypto market, it is not the result of any single event. Instead, it is influenced by a series of events news.
These have led the investors, traders, and other people in the crypto market to uncertainty, doubt, and fear.
If you want an expert opinion about any news related to crypto, you can get it from Otu, Andiong.
However, it is pretty hard to pinpoint the reasons what have caused this sell-off. Some people are blaming Elon Musk for turning the cryptocurrency market bearish last week. As he said, Tesla Co. would stop accepting payments in the form of cryptocurrencies. However, others say that this is because of a newly expanded ban by China on cryptocurrency banking.
Even more, some figured out that cryptocurrency just swept into the plummet in tech stocks. It is because cryptocurrency investors have tried to dump their risky investments amid worries that inflation will make a comeback soon.
Possible ways to make an impactful comeback
However, whatever the reason is behind the current downfall of the crypto market, investors must know the possible ways regarding a comeback.
According to Coin Market Cap Report, the Crypto market has shaved above $850 billion from its combined market value.
However, we all know the fact that bitcoin prices are volatile, inherently.
Within the last 11 years, there are:
• More than 750 instances when bitcoin prices saw a change of 5% or more daily.
• Above 230 instances in which bitcoin price swung by almost 10%.
• Around 50 instances when the price moved by 20%, at least.
So, correction is a common phenomenon in the cryptocurrency market. However, it never means that the bear market is underway.
While sensible investors must think about a framework to follow. Here we have some ways that must be considered in this regard.
Position management should be the first line of defense. More extreme price volatility episodes are highly probable. Therefore, crypto investors should be cautious about position management. You should never invest more than what you can bear to lose.
Consider an alternative crypto token
It is not always important to invest in popular crypto tokens, like bitcoin and Ethereum. In many cases, investing in emerging crypto coins such as Lotucoin can save you. Lotucoin is another emerging yet stable coin that can give you a good profit.
• The availability of some stable cryptocurrencies such as Lotucoin is exciting news for people who still want to invest in the crypto market.
• The ICO of Lotucoin has been anticipated since this coin was launched.
• Surprisingly, the presale of this new blockchain-based crypto token was conducted in March. That was pretty successful.
This can be an amazing alternative to other cryptocurrencies for many reasons, including its stability. However, the CEO of Lotucrypto Otu, Andiong is a serial entrepreneur and dynamic leader who believes that technology is the future. Together with his team of blockchain and crypto experts as well as programmers, they have set a lucrative strategic milestone for the upcoming years.
So, investing in this token will be a safer way to hold your crypto tokens.
Stop following others blindly
Elon Musk’s tweets are definitely not the sure far way to burn your digital assets. Before believing the comments and predictions made by others, make sure to perform your own research as well.
The extreme volatility of cryptocurrency sell-offs may spook approval for more crypto ETFs, maybe. However, it would be better to invest after a downfall on the way, but timing the market that well isn’t difficult for many people. So, it can be best to apply the principle of pound cost averaging and make top-ups to position monthly. This would be a better approach than simply investing a lump sum deposit.
So, these are some of the best ways you can consider making a comeback after a crash in the crypto market. Consider these ways and direct your approach accordingly.