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Home / Markets / Cryptocurrency /  Crypto Crash: Crypto Markets Lose US$830 bn Within 6 Weeks

Crypto markets are the talk of the town. The crypto market has crashed over 25% in 4 trading sessions.

In the last 6 weeks, the crypto market has crashed 40% and is one of the top wealth destroying asset classes. It has lost around US$830 bn in total marketcap.

This is not the first time something like this has happened.

Cryptos are known to be the most volatile asset class of the decade and 25% is just a flip of the card.

During the initial months of 2022, the crypto market fell over 40% and lost US$1 tn in marketcap.

When I write about cryptos, the quote from Satoshi Nakamoto comes to my mind:

Start the day with Coffee. End the day with Cryptocurrency.

Trade cryptos with proper risk management. With such volatility, you may need coffee at night too! 

Technically, the total marketcap of crypto has moved below the 100WEMA (Weekly Exponential Moving Average) for the first time after April 2020.

It’s now trading at a 40-week low and has formed a lower high-lower low structure which is a trend change as per Dow Theory.

Chart, line chart, histogram

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If experts are to be believed, the crypto market has plunged due to a broad sell-off amid extreme fear. Institutional investors seem to be selling their crypto holdings in bulk, triggering the massive price crash.

The recent fall brought Bitcoin, the largest cryptocurrency, below US$30,000. Bitcoin has not traded this low since July 2021.

Amid this bloodbath, El Salvador has bought the dip it seems. The Salvadoran president announced his country has purchased 500 more bitcoins.

Reportedly, since El Salvador adopted the cryptocurrency as legal tender, the Salvadoran government has purchased 2,301 bitcoins.

At present, the Bitcoin is trading at US$31,540 while the Ether is down 3% at US$2,379.

If you're interested in being part of my charting journey as I share how to create wealth from the profitable trade setup, join my telegram channel – Fast Profits Daily.

Equitymaster's Take on Cryptos

We don't get cryptos. Honest.

It's something that has caught our imagination, but we just can't figure out a way to value it, fundamentally speaking.

Chartists like our very own Brijesh, study prices and suggest various levels. That makes sense to us.

Having said that, our 'fundamental' take on cryptos is simple. It's in line with the approach anyone should have when dabbling in a space they don’t understand.

Invest only what you can afford to lose. Nothing more.

Happy Investing!

 

Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such.

This article is syndicated from Equitymaster.com
 

 

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