Crypto Market Cap Lost $1 Trillion in this Crash
Hello and Namaste Everyone
The Crypto market has not been doing well this month and we have seen it dropping where leading coins like Bitcoin and Ethereum are down by over 20%. When the market drops by a big percentage then its obvious that people get panic and especially new investors get worried. Also when the market is down then panic sell happens which also results in a further price drop. The Crypto market is majority dependent upon news and sentiments so when we see lots of positive news floating around then we see the prices go up and vice versa. Those who have completed a few years in crypto then are aware of it and they know that this is not the first time.
We often say that buy the dip but it also has certain challenges for new people because they don't know the right point to determine the bottom level. Another challenge is that when we think that this is bottom and starts buying in parts then after a certain period we are left with no money and then we have no money to buy the dip.
Bitcoin’s decline since that November high has wiped out more than $600 billion in market value, and over $1 trillion has been lost from the aggregate crypto market.
This is a chart of the crypto market cap including bitcoin and currently its at 1.7 trillion USD whereas it has gone up from 1 trillion to 3 trillion. The market was less than 1 trillion for a long time and then bitcoin itself did jump above its market cap. Now the crypto market is dropping during this blood bath this market cap has lost 1 trillion dollars worth of market cap which is a huge amount.
While this market crash is going on, there has been another trend that is going on and I think that this is good. More investors are paying attention to stable coins and this is why coins like USDT, BUSD, USDC, etc, and many platforms are offering a decent percentage on the deposits of these stable coins. With this new trend exchanges and many other platforms like Nexo have also started offering returns for deposits and its a good idea to go for you are looking for an investment option that has the least risk since stable coins are backed by USD so we can't expect a huge drop in price.
SO as of now its difficult to predict if the market will recover in the next few days however I have Jan is not a good month for crypto. Despite all this, I don't expect bitcoin to reach 20k and if it happens then I will surely use another amount to invest in a few coins.
Thank you so much Stay Safe
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