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Why is the cryptocurrency market declining in 2024? – Forbes INDIA Consultant
The cryptocurrency market suffered a downturn, with the total market capitalization falling to $2.51 trillion as of the last day of May 30, 2024. Market volume in the last 24 hours decreased by 9.22%. Bitcointhe largest cryptocurrency, is currently trading at $67,659, down 2.82% over the past seven days and 0.22% over the past 24 hours. Ethereumthe second largest cryptocurrency, is trading at $3,732, down 2.06% over the past seven days.
The cryptocurrency market is trading lower today as fear grows among investors following Mt. Gox’s $9 billion bitcoin move and slowing spot bitcoin ETF inflows in the United States.
Let’s dig deep
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How is the cryptocurrency market doing?
The cryptocurrency market is experiencing a collapse, perhaps due to approximately $9 billion in Bitcoin being transferred from Mt. Gox cold wallet to an unknown address. He probably made thirteen transactions, sparking fears of dumping in the market. Another reason could be that spot bitcoin ETF inflows are declining again.
The cryptocurrency market is showing significant volatility, with prices fluctuating unpredictably. Currently, there is a decline after Bitcoin surpassed its all-time high several times in March. The Dencun update and Bitcoin halving did not bring the surge the market expected. Furthermore, as expected, the latest US SEC approval on ETH ETFs did not bring any upside to the cryptocurrency world. As of the latest update, the Index of fear and greed is equal to 61, indicating a state of greed.
CoinMarketCap
The largest cryptocurrency by market capitalization, Bitcoin fell almost 2.90% in the last 24 hours and is trading at $67,598 as of May 30, 2024. On the other hand, Ethereum has almost dropped by 2.27% and is trading at $3,726.
Let’s see the reasons why the cryptocurrency market is down today
Cryptocurrency market analysts do not expect the Federal Market Committee (FOMC) to change interest rates, as investors are gradually getting used to the fact that the US central bank may not cut rates at all this year.
As of May 1, 2024, the 11 Bitcoin Spot ETFs have seen a collective net outflow of approximately $563.7 million, the largest since the funds began trading on January 11. That extended a five-day losing streak, according to the data source. CoinGlass. Investors have withdrawn around $1.2 billion from ETFs since April 2024. Also surprisingly, BlackRock’s iShares Bitcoin Trust (IBIT) recorded its first ever outflow this month, which saw the exit from the fund of almost $36.9 million.
Additionally, Fidelity’s FBTC led to outflows, losing $191.1 million in withdrawals. This could be a state of panic for bulls, as BlackRock’s IBIT and FBTC continuously attracted funds in the first quarter, more than offsetting large uniform outflows from the relatively expensive Grayscale ETF (GBTC).
Is investing in cryptocurrencies safe?
The cryptocurrency market has seen the good and the bad side of the market, whether it is the post-Russia-Ukraine effects, the collapse of Earth-Moon, the collapse of FTX or the tightening of fiscal regulation, it has witnessed the most storms violent in recent years.
The year 2023 gave a new beginning to the world of cryptocurrencies, showing positive signs of recovery. Cryptocurrency investors believe that in situations like this, investing in stable digital currencies like Bitcoin and Ethereum in SIP format is a safe choice. Cryptocurrency experts believe that investors should only consider 5% exposure to cryptocurrencies in their overall portfolio. The most important part is to invest only a tiny amount and not your entire life savings as the market is highly volatile and there are chances of you losing everything.
Steps on how to invest in the Indian cryptocurrency market
Step 1: Select the best cryptocurrency: Choose a cryptocurrency you want to invest in. Like any other asset class, cryptocurrency has its fundamentals and different blockchain networks that support them, intrinsic value, and mining techniques. Be sure to research and analyze before investing as the cryptocurrency market is highly volatile.
Step 2: Select a Cryptocurrency Exchange: After you have decided on a cryptocurrency, it is time for you to find a cryptocurrency exchange platform that is perfect for you. It is a necessity to have a functional account in a cryptocurrency 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 cryptocurrency exchange you need to register by providing personal details like name and address and complete all the KYC formalities. After setting up your account you are ready to invest in cryptocurrency.
Step 4: Choose the payment method: For buy a cryptocurrency you must select a payment option that is convenient for you. You can choose peer-to-peer, bank transfer, online payment methods or a crypto wallet.
Step 5: Buy Cryptocurrency: After adding funds to your account you can easily purchase the selected cryptocurrency. All you have to do is press on the “buy” tab and you can easily purchase the cryptocurrency of your choice.
Step 6: Storage: After purchasing cryptocurrencies, don’t forget to store your currencies safely because they are unregulated and you need to keep them safe as there is always a risk of hacking or theft. you can control crypto storage options from here.
Step 7: Selling cryptocurrency: This is as important as buying as it helps you earn money by investing. You can sell cryptocurrency the same way you bought it, just click on the “sell” tab in your wallet. You can fully or partially sell your cryptocurrency investment based on your choice, but don’t forget to book your profits timely.
Featured partners
Inheritance
Over 1 million investors trust Mudrex for their cryptocurrency investments
Safety
Mudrex is the Indian government. Recognized platform with 100% insured deposits stored in encrypted wallets
Commissions
Enjoy zero cryptocurrency deposit fees and the best rates in the industry.
Award-winning broker
Listed in Deloitte Fast 50 Index, Best Global FX Broker of 2022 – ForexExpo Dubai October 2022 & more
Best-in-Class for investment offerings
Trade over 26,000 assets with no minimum deposit
Customer care
Dedicated 24/7 support and easy registration
We invite you to invest carefully, your capital is at risk
Bottom line
It is a wise choice to cautiously observe the cryptocurrency market with the uncertain environment and slow recovery of macroeconomic situations in the world. Don’t make rash decisions because it is a good time to closely observe the market and analyze it.
We may never know, but the observation will ultimately help investors make smart decisions and they may have a preferred digital asset at a fair value, once the chaos situation has fully resolved.