To What Extent Cryptocurrency Investment Has Been Affected By Market Crash – 2024 Guide
2024 is just not the best year for crypto industry growth, as few top-ranked cryptocurrencies faced a tremendous fall after reaching an all-time high. There has been a recent fall in the prices of major cryptocurrencies like Bitcoin, Ether, Dogecoin, along with few other prominent cryptocurrencies.
The way bitcoin was going down, it was expected to see the fall in the price of the world’s most dominant cryptocurrency, but the whole crypto community has been shocked by seeing bitcoin falling below $30,000 this week. Bitcoin managed to regain its early position quickly and within no time, sprung up to reach around $34000 as of today.
This has happened again for the first time since January 2024, the first quarter of this year was quite in favor of digital currencies as along with bitcoin many other prominent digital currencies achieved an all-time high. It is a fact that Bitcoin’s fall just only affects the bitcoin market, but also influences the overall crypto industry. Read this article to know how the current crypto market conditions are affecting investment in cryptocurrencies.
Table of Contents
What makes digital currencies worth investing in?
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Cryptocurrency is not just a digital asset that you can hold in your wallets, it is also the most volatile digital asset that is traded on several trading platforms like Bitqt.site. Investors and traders have made millions of dollars from the digital trade of cryptocurrencies. There are some factors that make it worth buying and worth investing in.
Many of the crypto supporters consider cryptocurrencies like Bitcoin as the currency of the future and are motivated to buy them now, presuming that they would become more valuable over time. This is something that every crypto trader and investor looks forward to, the highly volatile nature of cryptocurrencies excites investors to earn a large chunk of profit within months.
Some people support the fact that cryptocurrency removes the central banks from managing the money supply, as banks are criticized for reducing the price via inflation. Many people in the crypto community like the technology behind cryptocurrencies, the blockchain, because of its recording system, decentralized processing, and claims to be more secure than traditional payment systems.
Are cryptocurrencies a good investment?
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Besides the issues and criticism, cryptocurrency is considered a good investment opportunity according to most financial market experts. The objective of cryptocurrencies like bitcoin to dominate the current financial infrastructure makes it a threat to banks and other financial institutions, whereas the idea is supported by many businesses operating in National and International trade.
The long-term investment approach towards cryptocurrencies tends to be successful as compared to the short-term. As many people consider it as the currency of the future, buying it now and selling it after years for a better return is becoming a common practice among investors and traders. Investing in digital currencies for a short period of time in order to earn a quick return from price speculation is done through Trading CFDs.
Whether a company or individuals plans to invest in cryptocurrencies as a long-term investment or short-term investment, the risk element will remain threatening. Unlike stocks, digital currencies generate no cash flow, you can only generate profit by selling it to someone willing to pay more for the currency than you did. Besides knowing all these visible aspects of cryptocurrencies, still, millions of people are encouraged to give it a try.
How has the recent market crash affected crypto investment?
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The recent Crypto Market Crash has made one thing clear, that there is no way you can predict the rate at which cryptocurrencies will fall or rise. The change in China’s stance towards bitcoin and other cryptocurrencies has played a significant role in affecting the image of digital currencies as the most emerging digital asset of all time.
There are a huge number of traders and investors who have postponed their plans to invest in cryptocurrencies due to the recent market crash. On the other hand, many investors believe that this is the right time to buy digital currencies, as the prices are going down. The recent tweets from Tesla’s CEO Elon Musk have also affected the crypto investment in a negative way.
The right time to invest in crypto
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Those people were quite smart who believed in cryptocurrency when most of the world was not even curious to know about it. Just in ten years, the crypto market proved to be the most profitable digital investment, and millions of people have benefited from the rise and fall of crypto prices. Bitcoin is just not the first digital currency but it’s also the first alternative currency to traditional state-backed currencies.
Considering the current crypto market crash, many of the people involved in the crypto industry are not really certain about investing in such low times. As the top-ranked cryptos have shown a decline in their values, many crypto investors and traders are looking forward to packing their bags up. Those investors who have been fighting against the odds of the crypto market for the last many years are the only ones not exactly shocked by the crash.
Crypto investors who hold large chunks of cryptocurrencies in their wallets believe that this is the right time to invest in the crypto market. The recent crash has lowered the crypto prices, and from one point of view, this could be the best time to grab some crypto as the previous market trends show that this digital asset recovers its lost value very quickly.
Conclusion:
Rise and fall is a part of the journey, the cryptocurrency industry has gone through worst in 2017/18 but recovered like none other digital assets. The highly volatile nature of cryptocurrencies is its most significant strength and weakness at the same time.
Like stocks and commodities, cryptocurrencies are also not immune to market crashes. The best thing about digital currencies is the rate at which they recover from a fall. It would not be wrong to predict that bitcoin still holds the potential to reach $100,000 by the end of 2024.
