Crypto market or Kangaroo market

Ahead of cryptocurrency bill in India, the crypto market has witnessed a decline. Major tokens have taken a huge blow in the last few days. Giants like Bitcoin and Ethereum have retreated from the peaks.

Other major tokens such as Solana, Shiba Inu, Dogecoin, Terra and Polkadot have declined by 40% of their value in the last one month. Majority of them have been slow for the last week.

According to Coinmarketcap, the impact of the recent fall has dragged down the market capitalization of virtual tokens by about 35%. It was constant around $2.1trillion yesterday. Furthermore, the daily trading volume of the digital asset class has less than halved, data showed. The daily traded volume is now below $100bn, whereas assets around $200bn were exchanging hands a day earlier.

However, investors are wondering if they should buy in the ongoing dips or persist with their risk off strategy amid the lack of optimism in crypto market.

Dileep Seinberg, Founder and CEO, Thinkchain, a blockchain and crypto consulting firm, said, “Crypto are highly volatile in nature. Current downers are like Kangaroo market. The dip is signalling bear market currently”.

In a Kangaroo market the assets changes value and bounces up and down over a period without any stable rising or declining trends.