When will the crypto market rise?
The Indian market has been trading in red line for a few days. Not only the Indian market, but the condition of the world’s markets is also not good. At the same time, the cryptocurrency market, which has been facing a decline for the last several days, has also not remained untouched by these. At one time there is little hope about crypto, but in the second moment, the pressure on the investors started increasing, especially since the havoc of the falling market has been more on the new and small investors.
Investors are not able to understand whether they have survived or not seeing the high market volatility. Is there any improvement in the coming days? Talking about bitcoin, the currency made a high of more than $ 67000 dollars in November 2021 last year. After this, it has declined by more than 1/3 due to slowdown and other reasons. About $2 trillion dollar was cleared from the crypto market, it also caused a huge loss to the investors as well as the firms related to the crypto. Whereas from the close of June 15, bitcoins are trading between $18000 dollars to $25000 dollars.
Let us tell you that the decline in the market was affected by the interest rate increase of central banks to control inflation. Lending money to consumers and businesses became expensive due to the increase in the interest rate of the federal reserve in America. Due to this, the operational cost of the business increased, the prices of goods and services increased, production costs, wages everything became expensive. The effect of this was seen on the crypto market including bitcoin.
Last week, once again raising the US fed interest rate has had an impact on the market around the world. Since then, whether India or US crypto investors are keeping a close eye on monetary policy. Along with this, digital currencies have been very much associated with the American share markets this year. Higher interest rates have put pressure on the S&P 500 and the Nasdaq. Which has also affected other risky assets like cryptocurrency. Not only small but big investors are also seen shying away from investing in crypto due to the market downturn.
Billionaire investor Jeffrey Gundlach is the CEO of investment management and investment advisor firm Double Line Capital. Where usually big investors wait for the price of digital currency to decrease to buy cryptocurrency, but according to the report, Jeffrey will not buy crypto in the market downturn. He says that he will not buy crypto in the bearish trend of the market because now some such steps can be taken by the federal reserve which can have a big impact on the market.
the economist believes that interest rates are anticipated to be increased in the coming times to curb the inflection rate. These reasons have led to bankruptcy in the crypto industry and due to this, investors have withdrawn. Apart from this, the regulator continues to mistrust and mistrust the virtual digital asset. There are fears of drowning people’s money. In some countries, the market regulator has warned about cryptocurrency. China banned the mining of bitcoin along with crypto-related transactions last year. In the midst of all this, the sentiments of investors have been hurt.
Talking about India, those investing in crypto here have been facing the strict attitude of the government for a long time. After the implementation of 1% TDS after 30% tax, many such investors have started withdrawing. At the same time, many crypto firms have also gone abroad. Currently, the Indian government is in the process of making rules regarding this, on the other hand, it is not even that there is only negative sentiment in the crypto market, but a report from Analytics shows that crypto adoption has increased across the world. Despite the bear market, crypto investors remain in the market and new investors are also coming into the market. Apart from this, in India also, the government has not yet advocated for the bank, they believe that it needs to be regulated. In such a situation, there are reports that the government is in the final stages of the bill and soon a big decision can be taken for it.
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