The crypto market is back in the green. As of today, it’s up by almost 16%, giving HODLers, investors, and traders something to cheer about.
Not a bad day to hum Frustiyaao Nahi Moora, huh?
Broader Market Highlights
The broader market is in the green for now. But it is better to proceed with caution.
Are we relieved? Yes.
Are we out of the woods yet? We’ll have to wait and see. Also, Do Your Own Research (DYOR).
While you wait, if you are into sentimental assertions, here’s a list of hits and misses that might drive the market over the next few days.
The good news
- Binance Coin or BNB—the second-largest altcoin by market cap—managed to rebound from a key support level.
- The author of Rich Dad, Poor Dad, Robert Kiyosaki, is bullish on Bitcoin and plans to purchase some at lower levels.
- Shiba Inu is likely to come out with its version of a stablecoin soon.
GALA, APE, and MKR have current gains sitting at 67.45%, 67.15%, and 66.91%, respectively.
- Terra USD and LUNA continue to be on life support as UST de-pegs deeper. Also, the coins stand delisted as of 5 PM, May 14, 2022, IST.
- The Terra blockchain has stopped activity to prevent low-cost governance attacks.
- Shiba Inu deserves some attention as it is perilously close to the key support levels, and a breach might pull the current prices lower.
Current Conversion Standard: $1 = (₹81.17)
Coins That Are Turning Heads
Let’s now shift our focus to some of the crypto assets that have gained quite a bit in the past 24 hours and try to make sense of what might have triggered the upward moves.
Binance Coin (BNB): Up by 26.70% for now and currently trading at $301.91 (₹24,506.03).
Reason for the upmove: Movement can be observed on the charts, with BNB bouncing from key levels of $263. It was just the technical push that drove this crypto upward.
Bitcoin (BTC): Up by 12.06% for now and currently trading at $30,599 (₹24,83,720.83).
Reason for the upmove: BTC bottomed out at $26,970 on May 12th, 2022, due to heavy sell-offs implemented to buy and stabilize UST. Positive market sentiments on Friday—13 May 2022—pushed BTC beyond the key resistance level of $28,000, and that triggered an upmove.
Ethereum (ETH): Up by 15.04% for now and currently trading at $2,108 (₹1,71,106.36).
Reason for the upmove: The market is still upbeat about the Ethereum 2.0 upgrade (which will make Ethereum a Proof-of-Stake ecosystem). Plus, big buyers who were selling ETH have slowed down, and the reduced selling pressure has allowed the bulls to bounce back.
Overall, despite the market being up, we would recommend Doing Your Own Research (DYOR) before proceeding with crypto asset purchases. Also, don’t let the volatility discourage you.
The crypto market is hitting rock bottom. What should I do?
Yes, the market has dipped considerably, but it isn’t down in the dumps just yet. Remember the crypto market crash of 2020 when BTC fell by close to 50%? In March 2020, Bitcoin was languishing at $4,000 (₹2,96,520) (near-ETH levels), but in 18 months it peaked at $69,000 (₹50,99,100).
The moral of the story is this: A corrective phase or two isn’t enough to judge the market. As an investor or HODLer, you should stay optimistic.
Should I exit the crypto market as there seem to be no signs of revival?
In crypto, revival might not be immediate. But it is likely if you have the patience for it.
Let’s look at an example based on some historical facts. A person holding 1 BTC in early 2020 would have been tempted to sell it during the March dip when prices went below $4,000 (₹2,96,520). But if they gave in to that temptation, that person would have regretted the act later, because they would have missed the bull ride that followed. Remember BTC went all the way up to $64,000 (₹47,29,600) within 12 months.
Is this the right time for me to enter the crypto market?
Entering the market isn’t such a bad idea at any point if you have ensured due diligence and have a well-thought-out DYOR plan. However, if you want to enter right away, a crypto Systematic Investment Plan (SIP) might be a good option, as it eliminates risks associated with timing the market. With SIPs, it is always a good time to try out crypto.
Should I hold on to my crypto till the market settles, and once my portfolio is back to where it was before, should I exit?
Whether you should exit by selling crypto assets at zero profits is completely your call. But we can offer a few pointers to help you decide.
First things first, the answer depends on your financial obligations and liabilities. However, past trends have shown that HODLing and being patient in crypto can be rewarding.
Ideally, your overall investment portfolio should not have more than 5% to 10% of crypto in order to minimize overall risk exposure.
And, even in crypto, diversifying is a great way to average out the volatility.
Should I be worried about regulatory uncertainties while buying crypto?
Government taxing crypto is the first step toward crypto gaining recognition. Also, with India’s digital currency plans, crypto acceptance doesn’t seem too far away.
Across the globe as well, crypto regulations have only started getting clearer now, paving the way for a pro-crypto tide in the future. El Salvador accepting Bitcoin as legal tender is the most well-known example of course, but recently, on 5 May 2022, even Germany announced a crypto-favoring regulation.
Besides, in the years to come, crypto is very likely to have a major impact on real estate, supply chain, art curation, and every other field of interest. And with crypto being regarded as the incentivizing layer of the upcoming Web 3.0 ecosystem, the road ahead seems a lot more certain now.
Disclaimer : Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. The information provided in this post is not to be considered as investment/financial advice from CoinSwitch. Any action taken upon the information shall be at user's own risk.
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