Thu. Feb 22nd, 2024
Cryptocurrency Investment

Since the month of January 2021, the valuation of cryptocurrencies across the globe has fallen below the $1 trillion mark for the first time. Investors should note that the major crypto coins have faced several losses, and so experts assume that the “crypto winter” has arrived on the scene. 

Kavan Choksi- the impact of the Gulf region on cryptocurrency investments 

Business and finance expert Kavan Choksi states the drop in the value of the Bitcoin currency comes as no surprise to market analysts and investors. It is one of the most valuable cryptocurrencies when it comes to market capitalization, and its value has dropped by nearly 65%. This trend took place for almost 12 weeks till it showed positive signs of being alive again. 

According to the global brokerage firm Axiory, investors in MENA are conservative when it comes to cryptocurrency investments, and this pattern helps them stay safe from the present drop in cryptocurrency prices. Experts state that investors in MENA are very sensitive to volatility, and they have several questions about the instruments they wish to invest in. They are not open to new assets in the market, and so cryptocurrency investments are generally not present in their investment pools. 

Soaring inflation and the need to be informed about the trends in the market 

He states that this risk-taking approach is the main reason for the globe’s cryptocurrency crisis, as investors are cautious about the inflation that has affected any economies in the world. The crypto market, which is a part of the traditional stock market, has been influenced by soaring inflation. The indices of the Nasdaq and S&P 500 have fallen even more than 20% from the beginning of 2022. 

There are hopes that Bitcoin will recover in the future

Experts and market analysts state that it will take time; however, Bitcoin will recover in the future from what it has seen in recent months. The Crypto Regulation in the Middle East has sparked some debates in the region when it comes to the entire credibility of cryptocurrencies, especially when it comes to their widespread adoption. 

In the UAE, the Emirates and the AL Futtaim are two firms that accept digital currencies as modes of payment. The Government, however, is taking positive steps to spread cryptocurrency awareness and protect its people with understanding against cyber attacks on crypto wallets. 

Be equipped with financial education in a volatile market 

Business and finance expert Kavan Choksi states that the current market is volatile and so investors should be armed with financial education. This awareness will help them to make salient choices about different asset classes and how they can optimize profits during turbulent times.  Many investors have refrained from investments in the stock market, but again, it is not prudent to wait for this phase of volatility to pass as you might miss out on the opportunity of buying stocks at discounted rates. He advises people to study the market and observe the trends that affect the rise and fall of stock and cryptocurrency prices in the financial markets.