The cryptocurrency extended its selloff on Thursday, with bitcoin falling to a low of $25,401.05, its lowest level since December 28, 2020, and the TeraUSD stablecoin crashing below its dollar peg.
The crypto market has been witnessing widespread unrest since the Fed hiked rates last week. The crash has sent all crypto into a tailspin that has panicked investors.
The broad-based drop has triggered a massive selloff in the cryptocurrency market as investors seek to offload their holdings and hedge losses amid the ongoing uncertainty.
Should long-term cryptocurrency investors make use of the extreme volatility in the market to place their bets? Or, should they sit outside during this period.
‘Long term investors always win’
CoinDCX co-founder and CEO Sumit Gupta on Thursday suggested investors to hold on to their investments for a long time if they have a firm belief.
“I would not recommend starting a sell out of fear and panic. This is not the first time this is happening! Remember that a long-term investor always wins,” said the CoinDCX CEO.
He further added, “Financial markets are behaving irrationally these days. It is not just crypto, its impact is being seen around the equity market as well.”
“While it is hard to predict how things will go in the short term, I am excited about the industry’s potential to innovate and create value in the long term,” said Ashish Singhal, co-founder and CEO of CoinSwitch.
‘Do your own research’
CoinSwitch CEO said: “Your actions should follow a sound assessment. Don’t buy because there are others. Don’t sell because there are others. Do your own research.”
The massive selloff in the cryptocurrency wiped out more than $200 billion in assets from the market in just 24 hours, according to estimates by price-tracking website CoinMarketCap.
The widespread decline in the crypto complex prompted by the collapse of the TeraUSD stablecoin hit the major token hard.
Ethereum, the world’s second-largest cryptocurrency, fell nearly 15% today to $1,700, its lowest since June last year.
Unlike previous selloffs in broader financial markets, when cryptocurrencies have remained largely untouched, this time the selling pressure in these assets has undermined the broader argument that they are reliable stores of value amid market volatility.
Meanwhile, a senior watchdog has said that global market regulators may launch a joint body within the next year to better coordinate cryptocurrency regulations.
The focus on the cryptocurrency market has intensified again this week and has long been a cautious watch amid more wild volatility.