Will the cryptocurrency market recover?

 

THE cryptocurrency market haemorrhaged value recently, as most tokens post negative 24-hour and seven-day averages, most noticeably Bitcoin. Can the cryptocurrency market recover?

Cryptocurrency has recently taken a central role in global financial interests, thanks in part to several altcoins making astronomical gains over the last few months. DOGE, SafeMoon and others like Shiba Inu Coin have increased their standing by thousands of percent. But other established currencies such as Bitcoin have forfeited staggering wealth, dragging the rest of the market with them.

Can the cryptocurrency market recover?

According to CoinMarketCap, nearly every coin in the top ten performing currencies has forfeited significant value over the last week.

The change is most noticeable in Bitcoin, now worth $38,358 (£27,107), down from nearly $50,000 (£35,334) this time last week.Several factors have prompted this sudden free fall, but experts primarily blame the volatile nature of most decentralised digital currencies.

Institutions are becoming a creeping presence in the market, and others could soon follow China's footsteps.

Henri Arslanian, global head of crypto at PwC consultants, said he wouldn't be surprised to see other regulators eventually weigh in.

He told the Financial Times they could "warn investors" over the inherent market volatility.

Mr Arslanian added the presence of "institutional players and institutional investors" would not slow down "anytime soon".