Should You Start Buying Cryptos Now? Buy The Dip Now
Cryptocurrencies have plunged in value by hundreds of billions of dollars, causing a rout affecting digital token prices across the board. The largest cryptocurrency, Bitcoin, has fallen by more than 10 per cent in the last week and was testing $40,000 levels on Monday.
Some others suffered even a greater degree of pain. For example, Gala, Loopring, Axis Infinity have witnessed one-third of the value over a week.
Analysts attribute the Fed’s hawkish commentary, expected rate hikes, lower risk appetite, and lower funds for cryptos as key reasons behind the carnage in cryptocurrency markets. Sluggish fundamental value and a fear of a broad regulatory crackdown have sent most altcoins plunging. Trends in the US are a harbinger for most cryptocurrencies. And more that, people’s low-risk appetite is a major reason.
Though Altcoins have more potential, they follow Bitcoin. If the later correct, the former also start bleeding. Considering the higher volatility, they are more vulnerable to steep falls in a short time than other cryptocurrencies.
Experts believe that for now, Altcoins will continue to drop as the dominance of Bitcoin increases.
Should You Buy Cryptos Now?
Most altcoins have dropped more than 20 per cent in the last seven days, according to Prashant Malviya. Aave, Basic Attention Token, DeCred, SushiSwap, The Sandbox, Fantom, Helium, and Enjin Coin are among the leading altcoins that have fallen to lower levels. Currently, they are oversold and the chances of further downside are limited.
The market is in a downtrend, as it’s been unable to break the $100 billion mark in the past few days. Analysts believe that long-term investors shouldn’t miss this dip, as it’s a great opportunity to buy tokens at low price points.