The cryptocurrency market is undergoing a crash. The drop in prices has spooked investors, who are selling their holdings in droves. Since the start of the year, the combined market cap of cryptocurrencies has increased exponentially, and reached almost $600 billion by the end of 2017. This number has continued to rise and reach a high of $801 billion in January 2018, but has subsequently fallen back. The Shiba Inu coin has lost 78 percent in value since then.
Although a crypto crash is a temporary setback for investors, the drop has had serious consequences for the industry. Facebook recently banned ads related to cryptocurrencies and other digital assets. Mark Zuckerberg had once called cryptocurrencies dangerous, and the platform has now moved to ban the use of these digital currencies. If the current crypto crash is a blip, there are some solid projects that are making real money for their investors. While it is important to stay calm and don’t get too excited, investors should take advantage of the dip in price and avoid investing money into them.
Although it may seem like the cryptocurrency market has peaked, many investors have been hurt by the recent turbulence. This decline has hurt retail investors who have been around for a few years. They have learned from the ups and downs of the market, and stayed away. Unfortunately, the hype of last year had many people jumping into the crypto world, and they bought in at the height of the market. Now, that same hype has led to a crash in the crypto markets.
The crash of crypto currencies has been a wake-up call for investors who have been in the market for years. It is important to understand that there are a variety of reasons why the market has fallen in value. While the latest dip is a setback, it could also be a blip that serves as an opportunity for new entrants to invest in the digital asset. The price collapse of the crypto industry has created a perfect environment for investors to get in on a cheap and attractive deal.
The Cryptocurrency Bill is another reason for the current crypto crash. The proposed legislation would make private cryptocurrencies illegal and create a regulatory framework for a centrally issued, official digital currency. This bill will be introduced in the Winter Session of Congress beginning on November 29. For the time being, the fall in crypto is temporary. There are many positives to the new laws that will help protect the market. It is still a good time to buy.
One reason why the cryptocurrency market is crashing is because of changing investor psychology. Several weeks ago, investors focused on the growth potential of the crypto market. Now, they’re more worried about the risks. There are negative headlines about the crypto world. Currently, this is causing panic among investors. There are fewer people investing in the crypto market, which is bad for the whole economy. This is one of the reasons why the current drop is happening.
The Cryptocurrency Bill is one reason for the current crypto crash. The bill will make it illegal to use private cryptocurrencies in the country. The new law will also create a framework for a government-issued digital currency. The official digital currency will be issued by the Reserve Bank of India. However, it will be very hard to regulate if it is not backed by a central authority. In addition to the upcoming legislation, a new government regulation can help the crypto market grow more rapidly.
The recent dip has been hurtful for many crypto investors. Though the industry has experienced many ups and downs, retail investors have only recently gotten involved. While the Bitcoin price has been increasing steadily over the past few months, many retail investors bought the cryptocurrency when it peaked. But while crypto investors are still holding onto their investments, the crypto market is still in the process of recovering. If you are an investor who is in the cryptocurrency market, you should wait for the recovery to be slow, as it may be a cyclical phenomenon.
Despite the infamous crypto crash, the Bitcoin price has risen significantly over the past week. It was up to eight-thousand-twenty percent at its peak just before the weekend. The average market cap of cryptocurrencies in India is now $531 billion. This was $830 billion at the peak of the market, but it has now fallen to $531 billion. A similar drop in Bitcoin’s value is expected during the first quarter of the year, as well as in the rest of 2018.