The cryptocurrency markets have tanked. All major top tokens are bleeding red and the global market cap fell 7.30 per cent and is now reduced to $1.67 trillion.
As per data from CoinMarketCap as of 14:00 IST, even top crypto tokens like Bitcoin, Ethereum, Cardano, and Solana felt the hit of the crash. Bitcoin broke its support levels and is now trading at $36,285.07 after falling 8.20 per cent in the last 24 hours.
Ethereum fell around 7 per cent. Solana and Cardano each were respectively over 10 and 11 per cent down.
Memecoins like Dogecoin and Shiba Inu also felt the hit. Elon Musk’s favorite crypto token, Dogecoin, fell over 5 per cent and Shiba Inu crashed over 6 per cent in the last 24 hours.
So, this begs the question, what should investors do now? Should they also sell of their holding amid the raging negative sentiments in the markets or should they HODL?
Sharat Chandra, crypto expert and Vice President, Research and Strategy at EarthID told Business Today that this dip in prices should be taken as an opportunity to buy. He said, "Technical indicators signal that Bitcoin prices will hover around $30,000 to $32,000. The Luna Foundation Guard is making the best use of the fall in Bitcoin prices and has amassed close to $1.5 billion in Bitcoin to ramp up the reserves for Terra stablecoin and has become the numero uno holder of Bitcoin, displacing Tesla.”
Chandra further explained how stablecoins have stood their ground where Bitcoin and altcoins started plummeting. He said, “Stablecoins have performed relatively better than altcoins. Given the volatility in the market, investors can look at expanding their portfolio in stablecoins.”
Vikram Subburaj, CEO of Giottus Crypto Exchange told Business Today, “Crypto markets are going to be volatile until investors, who are currently risk-off, turn to risk-on mode. In the upcoming months, the surge in dollar index DXY has to reverse before there are indications of a revival in stocks and crypto. Bitcoin and other crypto-assets can potentially shed up to 20 per cent or more from current levels before investor funds start flowing into the asset again.”
He further advised investors an approach to best benefit from this dip. He said, “Investors will be better off to stack cash and wait for signals of a reversal before allocating fresh capital to crypto. Patience will be key to allowing existing portfolios to consolidate and grow. We anticipate a strong Q4 2022 for crypto assets.”
Sathvik Vishwanath, co-founder, and CEO of Unocoin crypto exchange said that the current cues are worrisome only for short-term investors and long-term investors need to worry about the market blues. He said, “The market is fluctuating quite a bit for a couple of days. While this generally would not matter for medium- or long-term holders the short-term holders should be cautious about their actions during these testing times.”
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