- Crypto retailers are learning and enjoying the highly volatile market
- The latest market behaviour made retailers exit, but few of them took another and dip enjoying the roller coaster ride
- Celebrity tweets and memes have helped the crypto market attract several retailers
- After the market crash due to celebrity words, still such popular personalities are able to impact the prices
Crypto market has seen several entries since last year. With financial institutions several retailers have also embraced digital assets. Recently, Reuters have published a report explaining how the price makes the crypto market something similar to a roller coaster. Notably, the report also revealed that short-term buyers in the market are learning to enjoy the roller coaster ride. Indeed, several retailers have shown positive mood while prices witnessed turbulence.
Why did the bullish crypto market crash?
Bitcoin along with several other altcoins have seen mainstream adoption amid the global pandemic. Institutions and whale investors found the emerging asset class a safe haven while the value of fiat was plunging due to printings by the government. As inflation in the economy helped Bitcoin gain more value in terms of price and market capitalization. The prices in the crypto market have achieved several new all-time highs.
However, in mid-May 2021 the bullish behaviour took a u-turn in the cryptosphere. Bitcoin, the leading virtual asset, dipped by more than 50% from it’s all-time last high price level. Notably, the impact of the leading currency caused several altcoins to lose their value. It is known that there were a multitude of reasons that caused such dips.
Few of the major reasons were the change in celebrity sentiments and Chinese regulatory concerns.
Market behaviour made retailers exit
Following the dip in prices, several retail investors began to exit the market. The panic regarding losses caused a severe sell-off. Still there were few investors who made the correct decisions. Instead of following the prices in the market such followed the potential of the assets.
Reuters shared a story of one retail investor named Brjánn Bettencourt. Bettencourt was a photographer in Toronto, who had owned BTC and ETH assets over the last year. When the crypto market dipped, Bettencourt rolled out of bed finding his portfolio striked. However, at the moment instead of making panic sell-offs like other retailers, Bettencourt chose to acquire more such assets.
According to the retail investor, investing in digital currency is not for the faint of heart. Notably, the investor saw the acquisitions as a serious long-term investment.
Retail interest in cryptocurrency
Quite an amazing count of retailers have scooped in the crypto market since the beginning of this year. The major reasons for retailers finding crypto is celebrity tweets and the popular Reddit forum entitled WallStreetBets. According to Ethoan Lou, former BTC miner, retail entry in the crypto market helped Bitcoin, Ethereum, Dogecoin and other cryptocurrencies to achieve new price levels.
On the other hand, according to a report from Coinbase, a global leading crypto assets exchange, the count of retailers has surged tremendously. The exchange revealed that more than 56mn globally, have made $355 billion in trading volumes in Q1 2021. Moreover, it is also noteworthy that in the first quarter there were about $120 billion worth of investment from retail and $215 billion from institutions. Whereas, In the last year, only $30 billion of total investments were made.
Still celebrities can impact the assets prices
Elon Musk, the CEO of Tesla and SpaceX is one of the bigger crypto proponents. His tweets in favour of digital assets has helped such currencies attract more investors. Ultimately, coins like Bitcoin and Dogecoin have achieved new price levels following his tweets.
However, the recent Tesla’s suspension of BTC as a method of payment due to environmental concerns of Musk remained a major reason for the recent crypto market crash. Moreover, BTC price faced a more severe plunge when Musk shared a break up with BTC meme in a tweet thread. Indeed, following the scenario, several considered that Musk pumped and dumped the prices for his benefits.
However, following several allegations, Musk clarified its stance regarding BTC and claimed that he will again embrace the coin once the mining operations shift to renewables. Notably, the positive stance of the Tesla CEO again helped the coin gain its bullish momentum back.
According to experts, if celebrity words continue to impact the price the assets will never gain a long term bullish momentum.
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