Why Is The Crypto Market Down Today?

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March 17,2024.

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Cryptocurrencies saw a good start to 2024; following a rough 2022, most of the tokens saw a resurgence last year, and as of , March 4, 2024, they are trading at an extraordinary $2.38 trillion market capitalization. Nonetheless, in comparison to their all-time highs, cryptocurrency prices are still cheap.

The first half of the year has seen a wild ride in the price of cryptocurrencies. Will the latter half of the year see a sluggish rise, or will cryptocurrencies soar to new heights and fully overcome their losses from the previous year?

How is the cryptocurrency market doing?

The cryptocurrency market is swaying left to right, settling within a narrow range with gentle curves.The 2022 FTX disaster rocked the market and sent it plunging. Major cryptocurrencies like Ethereum and Bitcoin gained new life and optimism this year as a result of the macroeconomic conditions that were more relaxed and the slowing rate of inflation. As of March 4, 2024, ETH is trading at $3,472, which is around 29.1% below its all-time high, and BTC is trading at an extraordinarily high figure of $63, 667, which is roughly 7.78% below its all-time high.

Still, the mood of the market has gradually shifted from fear to greed and back again to neutral. This is the nature of the extremely erratic and volatile cryptocurrency market. Last month, the cryptocurrencies were beginning to show signs of stability, however because of the US inflation and its impact.

The position of the US Federal Reserve about rate hikes has completely turned the cryptocurrency market upside down. After surpassing $31,000 in July 2023, Bitcoin fell to a low of $27,000 in August 2023. However, it made a remarkable comeback in October at $34,495, and it is currently trading at an incredible $63,000. Crypto investors are now both intrigued and uneasy about this.

The value of the digital cryptocurrency market is $110.43 billion at the moment. The two biggest cryptocurrencies in the world, Bitcoin and Ethereum, were leading the pack until last month and are now beginning to show signs of recovery. On March 4, 2024, the price of Ethereum is $3,472 and the price of Bitcoin is $63,667.

Up until now, the cryptocurrency market has undoubtedly responded favourably to the unpredictability of the global financial system and has remained resilient in the face of tightened lending conditions and unstable bond market volatility. Cryptocurrency cannot sail alone; all other financial assets must have the same sentiments in order to create a balanced environment.

Is it Safe to Invest in Cryptocurrency?

The cryptocurrency market has seen both positive and negative developments over the last few years, including the effects of the Russia-Ukraine crisis, the crash of Terra-Luna, the collapse of FTX, and tighter tax regulations.

The cryptocurrency industry made a complete turnaround in 2024 and began to show encouraging indications of resurgence. Investors in cryptocurrencies think that at times such as these, purchasing stable digital currencies like Ethereum and bitcoin.

..Experts in cryptocurrency believe that investors should only contemplate allocating 5% of their total portfolio to cryptocurrencies. The most crucial thing to remember is that the market is extremely unpredictable and you could lose everything, therefore you should only invest a small portion of your life savings.

How To Invest In The Cryptocurrency Market: Steps?

Step 1: Choose a digital currency Select the coin that you want to buy. Cryptocurrency, like any other asset class, has intrinsic value, mining procedures, and its own set of foundations supported by several blockchain networks. Because the cryptocurrency market is so volatile, make sure to do your homework and analysis before making an investment.

Step 2: Choose a cryptocurrency exchange: Now that you've decided on a cryptocurrency, it's time to identify the best exchange platform for you. To purchase and sell cryptocurrencies, you must have a working account on a cryptocurrency exchange.

Step 3: KYC After choosing a cryptocurrency exchange, you must register by giving personal information such as your name and address and completing all necessary KYC procedures. You're prepared to make cryptocurrency investments after creating your account.

Step 4: Select payment method: You must choose a payment method that you are comfortable with in order to purchase a cryptocurrency. Peer-to-peer, bank transfer, online payment method, and cryptocurrency wallet are your options.

Step 5: Buy bitcoin: You can easily purchase the cryptocurrency of your choice after depositing funds to your account. Simply click the "buy" option to effortlessly purchase the coin of your choosing.

Step 6: Storage: After buying cryptocurrency, remember to store it safely. Since there is no regulation over these funds, there is always a chance of theft or hacking. Here is where you can view your options for storing cryptocurrency.

Step 7: Sell cryptocurrency: This is just as crucial as buying since it allows you to profit from your investment. Simply select the "sell" button in your portfolio to sell the cryptocurrency in the same manner that you bought it.

The End.

Thanks for Reading.