ew Delhi: The recent sell-off in the cryptocurrency market was a huge blow to the investors as it wiped out $1 trillion in market cap from the industry.
The carnage was so intense that major cryptocurrencies, including behemoths like Bitcoin and Ethereum, lost up to half of their value from the peak, while other altcoins felt more pain.
The tapering cues from the Federal Reserve, rising bond yields, crackdown signals and regulatory strictness weighed on the sentiments of the crypto space.
It appears that the world is coming to an end for the crypto community, and the crypto market is a dead rubber. After a brief recovery, the digital token market was back in red on Monday afternoon.
The crypto market has tumbled lately, said WazirX Trade Desk, adding that it's too early to say that the crypto market is dead.
Supporting his argument, it said that Intel is stepping into the Bitcoin mining industry -- planning to unveil a bitcoin mining chip, and about 300 banks have plans to launch bitcoin trading in the first half of 2022.
"Microsoft has purchased Activision, a leading game developer in the world, reiterating its focus on 'Metaverse' and Instagram plans to integrate NFTs while Twitter is rolling out NFT verifications," it added.
Market experts said that the latest fall in the crypto market is not any industry-specific phenomenon. Financial markets across the board have taken a hit, jittering the sentiments in the digital token space.
Unfortunately, crypto is still quite correlated with the stock market, and anything that happens there will eventually affect the crypto market, said Edul Patel, CEO and Co-founder of Mudrex.
"Fears over the rates hike by the US Fed has kept financial markets on their toes," he added. The Federal Reserve's two-day policy meet will kick off on Tuesday and the crypto space would be keenly watching it.
The cryptocurrency market has seen many big and small falls since one last year and has always bounced back all the time, said Gaurav Dahake, CEO & Founder Bitbns.
The stock market has also been underperforming for the past few months, but it still enjoys investor confidence in it, he added. "It is required to have some patience in the crypto investment and wait for some regulation clarity from the Fed, which would stabilize cryptocurrency."