Dazed and wide-eyed after last week’s crypto market crash, investors are wondering whether the worse is yet to come. Bitcoin tried to stabilize on Sunday but it still remains at the $35,000 mark. It has been up 0.95% in the last 24-hours. If it breaks the barrier at 38K and manages to reach the 40K mark before the end of the week, it would be considered a miracle!
In the past seven days, BTC price is down 19%. Investors witnessed the popular cryptocurrency’s worst weekly performance since May 2021. The price drop had been prompted by China’s crackdown on trading and mining of cryptocurrencies followed by bitcoin’s impact on the environment.
This time around, the crypto market crash has been attributed to the US Federal Reserve moving to tighten monetary conditions and countries like Russia, Pakistan and Indonesia imposing a blanket ban on digital assets. Moreover, there has been a massive price correction of cryptocurrencies, helping some to gain and others to lose. But due to the market crash, all cryptocurrencies have been in the red.
The latest crash just shows how much risk there is in cryptocurrencies given its high volatility. David Duong, head of institutional research at Coinbase, believes the surplus of pandemic-related fiscal and monetary stimulus has been one of the bullish drivers for crypto. But Katie Stockton, founder of Fairlead Strategies, feels the market crash has been emotionally charged. She argued that shakeouts are common.
And then there are some investors like El Salvador President Nayib Bukele who took advantage of the market crash to get hands-on some “cheap” bitcoin! And it may have driven more investors on a buying spree as BTC hasn’t been this low since July 2021.
The market remains in the red.