Markets
Why did the crypto market crash in 2024? – Advisor Forbes INDIA
The cryptocurrency market has experienced a downturn, with the total market capitalization falling to $2.21 trillion from $2.49 trillion last month, as of May 3, 2024. Bitcoin, the largest cryptocurrency, is currently trading at $60,692, down 5.25% from the last seven. days, but reflecting an increase of 3.37% in the last 24 hours. Ethereum, the second-largest cryptocurrency, is trading at $3,032, down 2.81% in the last seven days.
The cryptocurrency market is bearish today as investors await news on the Federal Reserve’s interest rate policy and the stagnation in spot BTC ETF flows is affecting the price of Bitcoin.
Let’s delve deeper into this
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How is the crypto market performing?
The cryptocurrency market experiences significant volatility, with prices fluctuating unpredictably. There is currently a slowdown after Bitcoin surpassed its all-time high several times in March and Bitcoin’s halving did not bring the rise the market expected. In the last update, the Fear and Greed index is at 48.67, indicating a neutral state.
CoinMarketCap
The largest cryptocurrency by market cap, Bitcoin, is down almost 5.76% and is trading at $60,632 on May 3, 2024. On the other hand, Ethereum is almost down 3.28% and is trading at $ $3,033.
Let’s look at the reasons why the crypto market is bearish today
Crypto market analysts do not expect the Federal Market Committee (FOMC) to change interest rates as investors are gradually getting used to the fact that the US central bank cannot cut rates this year.
On May 1, 2024, the 11 Spot Bitcoin ETFs recorded a collective net outflow of about $563.7 million, the largest since the funds began trading on January 11. CurrencyGlass. Investors have withdrawn around $1.2 billion from ETFs since April 2024. Additionally, notably, BlackRock’s iShares Bitcoin Trust (IBIT) experienced its first outflow on Wednesday, which saw nearly $36.9 million come out of the bottom.
Additionally, Fidelity’s FBTC led to outflows, losing $191.1 million in withdrawals. This could be a state of panic for bulls, as BlackRock’s IBIT and FBTC continually attracted funds in the first quarter, more than offsetting large uniform outflows from the comparatively expensive Grayscale ETF (GBTC).
Is investing in cryptocurrency safe?
The cryptocurrency market has seen the good and the worst of the market, be it the post-Russia-Ukraine effects, the Earth-Luna crash, the collapse of FTX, or stricter tax regulation, and has witnessed the most violent storms during the last years.
The year 2023 gave a new beginning to the crypto world, showing positive signs of recovery. Crypto investors believe that in situations like this, investing in stable digital currencies like Bitcoin and Ethereum in SIP format is a safe choice. Crypto experts consider that in the overall portfolio, investors should only consider investing just 5% exposure to cryptocurrencies. The most important part is to invest only a tiny amount and not your entire savings as the market is highly volatile and there are chances of you losing everything.
Steps on how to invest in the Indian cryptocurrency market
Step 1: Select a cryptocurrency: Choose one cryptocurrency you want to invest. Like any other asset class, crypto has its own fundamentals and different blockchain networks supporting them, intrinsic value and mining techniques. Be sure to research and analyze before investing as the crypto market is highly volatile.
Step 2: Select a Crypto Exchange: Once you have decided on a cryptocurrency, it is time to find a perfect crypto exchange platform for you. It is necessary to have a working account on a cryptocurrency exchange that will help you buy and sell cryptocurrencies. Check out our article about best cryptocurrency exchanges in India.
Step 3: KYC: After selecting a crypto exchange, you need to register by providing personal details like name and address and complete all KYC formalities. Once you’ve set up your account, you’re ready to invest in cryptocurrency.
Step 4: Choose Payment Mode: To purchase a cryptocurrency, you need to select a payment option that you find comfortable. You can choose peer-to-peer, bank transfer, online payment mode or crypto wallet.
Step 5: Buy Cryptocurrency: After adding the funds to your account, you can easily buy the selected cryptocurrency. All you need to do is click on the “buy” tab and you will be able to easily purchase the cryptocurrency of your choice.
Step 6: Storage: After purchasing the cryptocurrencies, don’t forget to store your coins securely as they are not regulated and you must keep them safe as there is always a risk of hacking or theft. You can check the cryptographic storage options from here.
Step 7: Selling cryptocurrency: This is as important as buying as it helps you make money by investing. You can sell the cryptocurrency in the same way you bought it, just click on the “sell” tab in your portfolio. You can fully or partially sell your crypto investment based on your choice, but don’t forget to account for your profits in a timely manner.
Featured Partners
Legacy
More than 1 million investors trust Mudrex for their crypto investments
Security
Mudrex is the Indian government. recognized platform with 100% insured deposits stored in crypto wallets
Rates
Enjoy zero crypto deposit fees and the best rates in the industry.
Multi-award winning broker
Listed in Deloitte Fast 50 Index, 2021 Best Global FX Broker – ForexExpo Dubai October 2021 and more
Best in class for investment offering
Trade over 26,000 assets with no minimum deposit
Customer support
Dedicated 24/7 support and easy to sign up
Please invest carefully, your capital is at risk
Conclusion
It is a wise choice to observe the crypto market cautiously given the uncertain environment and the slow recovery of macroeconomic situations in the world. Do not make rash decisions as it is a good time to watch the market closely and analyze it.
You may never know, but observation will ultimately help investors make smart decisions and you may have a favorite digital asset at a fair value once the chaos situation completely subsides.