To curb the inflationary pressure, central banks are raising interest rates, affecting the returns on many asset classes globally.
Several assets are undergoing market volatility, including the S&P 500 Index, which recently fell into bear territory as it dropped by over 20% from its recent high. Bonds have suffered, too, and with the looming signs of global recession, crypto markets have also witnessed a downfall. Investors are worried across all asset classes as ROIs have significantly dropped, but the impact is higher on crypto due to the volatile nature of the market.
Investors’ confidence has taken a back seat as Bitcoin’s price has plummeted substantially since the beginning of the year, and investors are worried about their future returns. However, it should be noted that such high volatility is not foreign to this asset class, as similar cycles of bull and bear in the market have been witnessed historically. Still, crypto has eventually emerged to outperform any other asset class.
There is a rising class of investors who are becoming first-time investors in crypto as they explore faster ways to grow their wealth amidst declining returns in other asset…