Crypto: Another Crypto Collapse On The Cards: Should You Sell Or Hold Your Positions?

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New Delhi: Major cryptocurrencies have come under pressure this month. Not only did the bigger tokens lose their vigor, but the euphoria over high-flying altcoins died down as well.

Besides the dollar-pegged Tether and USD Coin, up to seven of the top 10 cryptocurrencies have given up 25% of their value in the past month, all posting double-digit cuts.

Bitcoin and Ethereum lost 13-17% each, while Dogecoin and XRP eroded up to 25% of investor wealth. Even the skyrocketing Solana slumped to $ 155 from $ 210.

The recent fall has made crypto investors anxious as the basket of digital tokens has become volatile recently. Investors worry about the erosion of wealth. The latest reports of the market collapse in the global media are adding to their woes.

Bitcoin’s crash last week came shortly after its debut as legal tender in El Salvador, said Sharan Nair, commercial director of CoinSwitch Kuber. “We are seeing reactions to demand, supply and developments. This is the fundamental characteristic of cryptocurrencies,” he added.

Analysts said it is currently a mixed market. Many currencies have reached new heights in their lives, they pointed out.

Hitesh Malviya, founder of itsblockchain.com, said September has always been a bearish month for Bitcoin. “$ 43,000 – $ 45,000 is a key support level for Bitcoin and the loss of this support will pave the way for the price to revisit the next support block which is $ 36,000 – $ 39,000. It is entirely possible for Bitcoin to revisit last week’s lows again, “he added.

Other experts, however, have not ruled out expectations of another market collapse. However, it is too early to tell, they added.

Johannes Schweifer, CEO of CoreLedger, a Liechtenstein-based startup, said there is always a possibility of collapse. “Bitcoin has shown in the past that it is capable of surprise crashes and surprise growths at price levels never seen before,” he added.

There have been a number of news stories that potentially put crypto in the negative spotlight. At the same time, key players are buying crypto and crypto infrastructure, such as MasterCard’s acquisition of blockchain-based analytics startup CipherTrace.

According to market watchers, the only strategy is to keep an eye on the global market and its developments and then make an informed investment decision.

“You can never accurately predict what might be a good time or a bad time in the crypto market,” CoinSwitch’s Nair said.

El Salvador could have been a big trigger, added Schweifer. For the first time in history, a country has shown that the US dollar is not the only currency. “The adoption of Bitcoin as an alternative could have caused an uproar and feelings of revenge,” he added.

Malviya said, “Now is a good time to buy Bitcoin and Ethereum for the long term, but for short-term trades you have to wait as Bitcoin is currently trading near the key support level and you have to avoid effect positions. leverage. ”

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