The crypto market is seeing a spate of recovery after going through one of its worst 2 quarters since digital assets became mainstream commodities, market cap for the assets reached US$280 billion in July.
Investment products tracking crypto assets have pulled in just US$400 million for the month of July, making it the longest period it had managed to rake in inflow since March reported Financial Times which was derived from crypto asset management group CoinShares.
Bitcoin the world’s largest cryptocurrency fell as much as 70% from an all-time high in November, while the size of the digital asset dipped to US$1 trillion from its heyday of hovering above US$3 trillion.
The volatility in the crypto market caused much anxiety including the collapse of Terra which was once the industry’s largest stablecoins and prompted a domino effect on several prominent hedge funds like Celcius and Three Arrow Capital to follow suit.
In recent weeks the market has somewhat recovered, the market capitalisation of 500 biggest tokens recovered to above US$1 trillion up 30% while Bitcoin stayed above the psychological range of US$20,000. Ether the second largest currency jumped 40% on the news that the token could switch to Blockchain technology where the carbon footprint is much lower.
However, some crypto analysts are warning against taking these signs too seriously, the worst may not be over with price stabilising does not mean the market will not swing the other way.