It has been told in this study that about three quarters of people investing in bitcoin are estimated to be at a loss. During this period, the price of bitcoin rose from around $250 to a high of around $69,000 in November last year. The number of people buying and selling cryptocurrencies through the app increased from 1.19 lakh to nearly 3.25 crore during this period. The researchers who conducted the study wrote, “Our analysis shows that the increase in the price of bitcoin is related to the increase in the number of its retail investors.”
It has been said in the study that retail investors were buying bitcoin when the prices were rising, while its big holders like whales were selling and earning profits. In addition, the study found that nearly 40 percent of those investing in cryptocurrencies were men under the age of 35. This segment is considered to be more risk-averse.
Last year there was a lot of boom in bitcoin. Since then, its price has lost more than one-third due to slowdown and some other reasons. This has caused huge losses to the investors as well as the firms associated with the crypto segment. Experts say that there has been a lot of selling in bitcoin. There are signs of inflation almost reaching its peak. Due to this, some relaxation in monetary policy can be given by the Central Banks of other countries including the US Federal Reserve. This could be the next big reason for the rise in the crypto market. Regulators in some countries have also warned investors about cryptocurrencies. This has also increased the pressure on the market. Due to the default of some crypto firms, apprehensions about this market have also increased. Many countries are also working on making stricter laws for the crypto segment.
cryptocurrencies prices on indian exchanges
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