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

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  
  • Home
  • Views On News
  • May 10, 2022 - Crypto Crash: Crypto Markets Lose US$830 bn Within 6 Weeks

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

May 10, 2022

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.

 

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. You'll get access to the best trading ideas in the stock market.

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.

Brijesh Bhatia

Brijesh Bhatia Research Analyst and expert chartist, is the editor of Alpha Wave Profits. Fully committed to his craft, Brijesh has mastered the art of making money by trading using technical analysis. Brijesh has an MBA from ICFAI and 16 years of experience in India's financial markets. He began his career on Dalal Street as commodities dealer and it wasn't long before he developed his own unique trading system. Brijesh worked on his trading system until it could be expected to deliver 5 units of return for every unit of risk.

Yellow Ad

Advertisement

Last Day to Access 'One Stock Crorepati' Opportunity

As you know, recently we went LIVE with our One Stock Crorepati MEGA Summit...

Around 10,000 readers like you had registered to attend this summit.

At the summit, they learned Richa Agarwal's secret blueprint of identifying potential 'crorepati' stocks.

Plus, they also discovered the details of one stock with crorepati potential...

If you missed this summit for some reason, then you can still get all the details by watching this special replay of the summit.

Learn more

Equitymaster requests your view! Post a comment on "Crypto Crash: Crypto Markets Lose US$830 bn Within 6 Weeks". Click here!

  

More Views on News

5 Indian Companies that are Leading the Green Hydrogen Revolution (Views On News)

Jul 4, 2022

As the green energy movement grows, Indian companies are on a mission to adopt green hydrogen, the cleanest form of energy in the world.

5 Indian Companies where Mutual Fund Holdings are Consistently Increasing (Views On News)

Jul 1, 2022

Mutual funds are buying shares at a time when FIIs are consistently selling. Here are 5 stocks where MF holdings has increased for the past 4 quarters.

Top 5 'Digital India' Stocks (Views On News)

Jun 29, 2022

These companies are leading the Government's US$1 tn 'Digital India' initiative.

Ajit Dayal on Investing in Infosys IPO and his Philosophy on Investing podcast (Views On News)

Jul 4, 2022

This week we continue our conversation with Ajit Dayal, Founder, Quantum Mutual Fund, Personalfn and Equitymaster.

This Billionaire Says Don't Invest in the Present. Should You Listen to him? (Profit Hunter)

Jul 4, 2022

A billionaire investor explains why you should not invest in the present.

More Views on News

Most Popular

Offer For Sale (ofs) What Does It Mean

Here's a quick guide to OFS in the stock market.

The One Smallcap Stock I'll Recommend Now (Profit Hunter)

Jun 21, 2022

This aspect of investing has a very high weightage on your overall returns, but often gets ignored when winning stories are written.

5 Consistent Compounding Stocks Available at Discount. Time to Buy? (Views On News)

Jun 22, 2022

The good side of a market correction? Investors get consistent compounding stocks at a discount.

Auto Stocks are in the Fast Lane. Is it Time to Buy? (Profit Hunter)

Jun 23, 2022

The auto index is outperforming the Nifty by a mile. Have auto stocks finally bottomed out?

5 Indian Companies where Mutual Fund Holdings are Consistently Increasing (Views On News)

Jul 1, 2022

Mutual funds are buying shares at a time when FIIs are consistently selling. Here are 5 stocks where MF holdings has increased for the past 4 quarters.

More

Become A Smarter Investor
In Just 5 Minutes

Multibagger Stock Guide 2022
Get our special report Multibagger Stocks Guide (2022 Edition) Now!
We will never sell or rent your email id.
Please read our Terms

S&P BSE SENSEX


Jul 4, 2022 (Close)

MARKET STATS