bitcoin price today: Bitcoin tops 22,000 dollars, crypto m-cap reaches 1 tn dollars. Is the crypto winter approaching its end?
Altcoins, meanwhile, beat the crypto behemoth as Polygon zoomed more than 13 percent. Ethereum rose 7 percent to top the $ 1450 mark in the last 24 hours.
The global crypto market value rose more than 3 percent to recover $ 1 trillion. The total crypto market volume over the last 24 hours was $ 70.38 billion, an increase of more than 7 percent.
The crypto industry has been dormant so far this year thanks to failed projects, rising inflation, geopolitical concerns and threatening fears of inflation and interest rate hikes.
Market participants believe it is too early to declare that the worst is over for the industry as the crypto market moves towards a prolonged winter, which may extend further, as more negative news flows in.
Avoid catching falling knives
Market experts said that investors should avoid catching falling knives and understand the basics of tokens before investing.
Sathvik Vishwanath, co-founder and CEO, Unocoin, said that investors should learn to avoid the falling knife in the bear markets. “It is very important to understand and study the market globally,” he added.
Judging tokens can be quite difficult, but understanding the underlying technology, its usefulness and the team can be useful, he added. “Investors who bought tokens after the project was fully launched have seen more stable returns.”
Although the near roadmap for crypto looks blurry as several projects may fail and petition for bankruptcy, the long-term prospects are bright and constructive, others said.
A few more crypto projects could go bankrupt, especially from the DeFi segment, which was structured around high-yield returns, said Khaleelulla Baig, co-founder and CEO, Koinbasket. – We will also see a tightening of the regulations.
More pain or gain?
According to market trackers, the crypto market may disappoint more in the short term. They suggest that high-risk investors may consider market-leading gaming and Metaverse projects.
– The usual fall in a bear market is almost 70 percent from the highest point, Sathvik said. “For long-term investors, this seems like a golden opportunity to cut costs and end the wrong investment.”
On the other hand, Baig from KoinBasket sees a final stage of correction of up to 30 percent within a quarter, and says that the market can remain within reach in the short term.
“Investors should focus on Team 1 projects that are available at a solid discount compared to their recent peaks, such as Bitcoin, Ethereum, Polkadot, Chainlink and others,” he added.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
