Markets
Why is the crypto market down in 2024? – Forbes INDIA Advisor
The cryptocurrency market saw a slowdown as the total market capitalization fell to $2.21 trillion from $2.49 trillion in the last month as of May 3, 2024. Bitcoin, the largest cryptocurrency , is currently trading at $60,692, down 5.25% over the past seven years. days but reflecting an increase of 3.37% over the last 24 hours. Ethereum, the second largest cryptocurrency, is trading at $3,032, down 2.81% over the past seven days.
The cryptocurrency market is down today as investors await news on the Federal Reserve’s interest rate policy and the blocking of spot BTC ETF inflows affects the price of Bitcoin.
Let’s dig deeper
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How is the crypto market performing?
The cryptocurrency market exhibits significant volatility, with prices fluctuating unpredictably. Currently, there is a slowdown after Bitcoin surpassed its all-time high several times in March and the Bitcoin halving did not result in the rise the market expected. As of the last update, the Fear and Greed Index stands at 48.67, indicating a neutral state.
CoinMarketCap
The largest cryptocurrency by market capitalization, Bitcoin, fell almost 5.76% and is trading at $60,632 as of May 3, 2024. On the other hand, Ethereum almost fell 3.28% and is trading at $3,033.
Let’s see the reasons why the crypto market is down today
Crypto market analysts do not expect the Federal Market Committee (FOMC) to change interest rates as investors gradually get used to the fact that the US central bank may not cut at all rates this year.
As of May 1, 2024, the 11 Spot Bitcoin ETFs have seen a collective net outflow of approximately $563.7 million, the largest since the funds began trading on January 11. This extended a five-day losing streak, according to the data source. CoinGlass. Investors have withdrawn approximately $1.2 billion from ETFs since April 2024. Additionally, it is notable that BlackRock’s iShares Bitcoin Trust (IBIT) saw its first-ever outflow on Wednesday, which saw nearly 36.9 million dollars coming out of the fund.
Additionally, Fidelity’s FBTC resulted in capital outflows, losing $191.1 million in withdrawals. This could be a state of panic for bulls as BlackRock’s IBIT and FBTC continually attracted inflows in the first quarter, more than offsetting large and uniform outflows from the relatively expensive Grayscale ETF (GBTC).
Is investing in cryptocurrencies safe?
The cryptocurrency market has seen both good and bad aspects of the market, whether it is the post-Russia-Ukraine effects, the Terra-Luna crash, the collapse of FTX or the strengthening of tax regulations. It has witnessed the most violent storms in recent years.
The year 2023 brought a fresh start 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 believe that in the overall portfolio, investors should simply consider investing only the 5% exposure to cryptocurrencies. The most important part is to invest only a tiny amount and not all your savings, because the market is very volatile and there are chances that you will lose everything.
Steps to Invest in the Indian Cryptocurrency Market
Step 1: Select a cryptocurrency: Choose one cryptocurrency in which you wish to invest. Like any other asset class, crypto has its own fundamentals and different blockchain networks that support them, intrinsic value and mining techniques. Be sure to research and analyze before investing as the crypto market is very volatile.
2nd step: Select a Cryptocurrency Exchange: After making your decision about a cryptocurrency, it is time for you to find a perfect cryptocurrency exchange platform for yourself. It is necessary to have a functioning account in a crypto exchange that will help you buy and sell cryptocurrencies. Check out our article on best cryptocurrency exchanges in india.
Step 3: KYC: Once you have selected a crypto exchange, you need to register by providing personal information such as your name and address and complete all KYC formalities. After creating your account, you are ready to invest in cryptocurrency.
Step 4: Choose payment method: To buy cryptocurrency, you need to select a payment option that suits you. You can choose peer-to-peer, bank transfer, online payment method or a crypto wallet.
Step 5: Buy cryptocurrency: After adding the funds to your account, you can easily purchase the selected cryptocurrency. All you have to do is press the “buy” tab and you can easily buy the cryptocurrency of your choice.
Step 6: Storage: After purchasing the cryptocurrencies, remember to store your currencies safely as they are not regulated and you need to keep them safe as there is always a risk of hacking or theft. You can consult crypto storage options from here.
Step 7: Selling cryptocurrencies: It is as important as buying because it helps you earn money by investing. You can sell the cryptocurrency the same way you bought it, just click on the “sell” tab in your wallet. You can sell your crypto investment entirely or partially depending on your choice, but remember to book your profits in a timely manner.
Featured Partners
Legacy
Over 1 Million Investors Trust Mudrex with Their Crypto Investments
Security
Mudrex is the Indian government. recognized platform with 100% insured deposits stored in crypto wallets
Costs
Benefit from zero crypto deposit fees and the best fee rates in the industry.
Multiple award-winning broker
Listed on Deloitte Fast 50 Index, Best Global Foreign Exchange Broker 2022 – ForexExpo Dubai October 2022 and more
Best investment offer
Trade over 26,000 assets with no minimum deposit
Customer service
Dedicated 24/7 support and easy sign-up
Please invest carefully, your capital is at risk
Conclusion
It is a wise choice to observe the crypto market cautiously amid an uncertain environment and a slow recovery in the macroeconomic situation around the world. Do not make rash decisions as this is the right time to closely observe the market and analyze it.
We may never know, but the observation will eventually help investors make smart decisions and might have a preferred digital asset at a fair value, once the chaotic situation completely subsides.