Fear Subsided From The Crypto Market

The crypto market is seeing a lot of growth and it looks like retail investors are looking to “buy when there is blood on the streets”. This is a good strategy for investors to follow when looking to invest in a market that is seeing a lot of growth.

Bitcoin’s price increased on Monday, reaching a closing rate of $19,800. The positive trend has continued into Tuesday morning, where the exchange rate is now 20,300. This is a 6.4% increase from the past 24 hours. Ethereum has seen an even greater uptick of 9.8%, currently sitting at $1160. Other top-ten altcoins are also up, by values ranging from 2.7% (XRP) to 9.8% (Solana).

The total value of all cryptocurrencies in circulation jumped 6% in the last 24 hours, according to CoinMarketCap. That brought the total market value to $917 billion.

The cryptocurrency Fear & Greed Index saw a 5 point rise to 19 by Tuesday- close to the upper edge of “extreme fear” territory. This is the highest level since May 7.

When the US stock market isn’t trading over weekends, traders take advantage and buy. This was seen last weekend. In addition, Asian trading has also been moderately positive- adding to the optimism of retail participants.

CoinShares reported that capital inflows into crypto funds last week amounted to $64m. The majority of this came from funds that allow shorts on bitcoin ($51m).Cryptocurrency-related companies have been targeted by information attacks that allege problems within the industry. For example, Circle CEO Jeremy Allaire denied rumours of issues with the USDC stablecoin. KuCoin trading platform CEO Johny Lyu denied rumours of a possible exchange default and assured that the platform had nothing to do with LUNA or Three Arrows Capital. By doing this, they hope to quell any fears that investors or consumers might have about the validity or safety of cryptocurrency exchanges.

Market veteran Peter Brandt has said that USDT has no place in the financial system and that stablecoin will soon die.

Vauld, a Singapore-based cryptocurrency lending and trading platform that targets the Indian market, has announced that it is suspending withdrawals due to market volatility.

The developers of Crema Finance, a Solana blockchain-based decentralised finance (DeFi) project, have suspended all operations due to a hack.

When we see timid attempts at growth in the crypto market, it’s too early to say for sure that the downtrend has been broken. However, with the current market conditions, it looks like retail investors are trying to “buy when there is blood on the streets”.