Big sell-off in crypto market for retail investors

There was a huge sell-off in the crypto market known for volatility last week. This was largely due to investors exiting high-risk assets due to concerns about inflation and rising interest rates. The price of Bitcoin, the largest cryptocurrency by market capitalization, dropped to $25,401 last Thursday. Apart from this, the price of Luna, a digital coin popular on social media, was reduced by almost half.

Despite warnings from regulators regarding cryptocurrencies, a large number of retail investors had invested in them to earn quick returns. Trading apps like Robinhood have helped increase retail investments in this segment. Nearly a quarter of Robinhood’s transaction-linked revenue in the first quarter of this year came from cryptocurrencies. On crypto platforms in recent years users The number has increased rapidly. Binance, one of the major crypto exchanges, had around 118 million users last month. This number was up 43.4 percent from the first quarter of the previous year.

However, retail investors have taken to social media to vent their losses after the cryptocurrency’s massive drop last week. A large part of the savings of some of these investors went into this fall. The crypto segment was started about 13 years ago and during this time it has seen many sudden ups and downs. For example, in November last year bitcoin The price of the company had lost almost 20 percent in two weeks. Earlier, bitcoin had made a record level of $69,000.

The regulation regarding this segment is also not strong. For traders of bitcoin and other cryptocurrencies, there is no protection in the event of a large drop in prices. It is difficult to estimate the loss caused to retail investors by the breakdown of the crypto market. This has weakened the confidence of these investors in this segment. By one estimate, more than 4 percent of adults in the UK, or about 2.3 million people, have cryptocurrency. Britain’s financial regulator says people are less aware of cryptocurrencies and often do not know what they are buying. <!–

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