As global interest wanes, should you now be worried about your crypto investments?

As global interest wanes, should you now be worried about your crypto investments?

Dubai: Investments in cryptocurrencies have been consistently declining after peaking in November 2021, with trading volumes dropping to sizably low levels since then. Is there an end in sight to this prolonged season of, what experts refer to as, ‘crypto winter’? If not, should investors be worried? Cryptocurrencies are still down over $1.5 trillion (Dh5.5 trillion) in value since the height of a massive price rally in 2021, with the total market valuation currently standing at $1.2 trillion (Dh4.4 trillion) along with the volume of daily traded crypto at $70 billion (Dh257 billion). The ‘crypto winter’ also wiped out over 67,000 crypto millionaires since peaking at about 100,000 in 2021 and last month alone, trading volume of the world’s largest crypto token Bitcoin, which makes up majority of the overall market, plummeted by almost $700 billion (Dh2.57 trillion). “It is estimated the total market value of cryptocurrencies went down dramatically, particularly between May and June 2021, as the digital coins became less likely of an investment tool,” wrote Raynor de Best, a researcher at Statista, an online market and consumer statistics database. “The price of Bitcoin has been erratic, and most other cryptocurrencies follow its larger price swings. This volatility