European stocks fell sharply Monday as global markets faced worries about the U.S. Federal Reserve's timetable for cutting lending and worries around struggling real estate developer China Evergrande Group.

 

The pan-European Stoxx 600 index was down about 2.2% early in the second half of the day, with the main fallers being the underlying resources, which are heavily linked to China. European banking sector stocks also fell an average of 4% and were poised for their worst session of the year. The German Dax index was down about 2.9%, which also led to its worst trading session of the year.

 

The decline in the European open came as global equities continued to struggle in September, traditionally a weak month for markets, and the Dow Jones Industrial Average suffered its first loss in 2021 for three straight weeks.

 

Hong Kong's Hang Seng Index led losses among Asia-Pacific markets in overnight trading Sunday, with shares of struggling Chinese property developer China Evergrande Group continuing to fall. Markets in mainland China, Japan and South Korea were closed Monday due to the holidays.

 

Global markets are also feeling some nervousness ahead of the much-anticipated September Federal Reserve meeting, which begins Tuesday. Fed Chairman Jerome Powell will hold a news conference Wednesday at the conclusion of the two-day meeting, and investors will be eager to catch any signs that the Fed will be winding down its loose monetary policy.

 

Powell has said a cut could happen this year, but investors are waiting for more specifics, especially after mixed economic data released after Powell's latest comments. U.S. stock futures were mixed in overnight trading Sunday.

European stocks rallied Thursday morning as investors prepare for the next reading of US nonfarm payrolls data due Friday.

 

Pan-European Stoxx 600 added 0.3% by mid-morning, with tourism and leisure stocks up 1.1%, while fixed assets fell 0.6%.

 

Investors around the world are watching closely the release of data from the US in the next few days. Markets await the weekly initial jobless claims report on Thursday and the Labor Department's nonfarm payrolls report on Friday.

 

Dow Jones estimates the non-farm jobs report for August is expected to add 720,000 new jobs and drop the unemployment rate to 5.2%.

 

The data could influence when the US Federal Reserve starts to cut its asset purchase program, as well as the direction of central bank policy in Europe. US stock futures remained largely unchanged on Wednesday night.

 

Recent statements from the central bank indicate that it is likely to slow the pace of monthly bond purchases if job growth continues at a rapid pace.

 

Meanwhile, stocks in the Asia-Pacific region were mixed overnight as investors reacted to trade data and corporate news from the region; Australia had a trade surplus of A $ 12.117 billion (about $ 8.93 billion), according to figures released Thursday by the country's Bureau of Statistics.

 

Stocks in mainland China were mixed after Chinese regulators called and interviewed 11 companies calling on passengers to correct “illegal behavior.”

 

Regarding the development of a vaccine against Covid, Moderna and Takeda Pharmaceutical announced Wednesday that they are working with Japanese authorities to recall several shipments after stainless steel contaminants were found in some vials.

 

In terms of individual share price movements, Sweden's Orphan Biovitrum gained more than 24% after US venture capital firms Advent International and Aurora Investment offered to buy a biopharmaceutical company from Stockholm at SEK 235 (US $ 27.30 ) per share.

 

At the bottom of the European blue-chip index, mining giant BHP fell 6% trading without dividends.

Oil prices rose on Friday, expecting a significant rise for the week due to concerns about short-term supply disruptions as energy companies began to stop production in the Gulf of Mexico ahead of a forecast of a potential hurricane over the weekend.

 

Futures for WTI crude oil rose 16 cents, or 0.2%, to $67.58 a barrel at 01.01 GMT, after recovering a 1.4% drop on Thursday. WTI is aiming for a weekly gain of more than 8%, which will be the strongest growth since the beginning of February.

 

Brent crude futures also rose 16 cents, or 0.2%, to $71.23 a barrel after falling 1.6% on Thursday.

 

The price of Brent crude will rise more than 9% this week, the biggest weekly jump since June 2020, largely due to relief that China has contained the delta variant flare-up.

 

On Thursday, the companies began moving workers from oil production platforms in the Gulf of Mexico, and BHP and BP said they had begun to stop production on offshore platforms as a storm brewed in the Caribbean Sea that is forecast to pass through the Persian Gulf over the weekend.

 

Offshore wells in the Gulf of Mexico account for 17% of U.S. crude oil production and 5% of dry natural gas production. More than 45% of all U.S. refining capacity is located on the Gulf Coast.

 

The prospect of supply disruptions in the Persian Gulf helped the market recover from losses on Thursday, which were partly caused by the resumption of production on the Mexican oil platform after a deadly fire.

 

"The market may have more serious concerns about the hurricane in the Caribbean. It is expected to become a powerful hurricane and potentially cause damage to the Gulf of Mexico and Texas early next week," ANZ Research said in a statement.

 

Analysts also expect the dollar movement to be an important factor on Friday after the long-awaited speech by US Federal Reserve Chairman Jerome Powell. Markets expect it to make some recommendations on plans to curtail bond purchases in the fourth quarter.

 

"If we see an earlier decline in prices, we expect the US dollar to rise and this will put pressure on oil and other commodities," said Commonwealth Bank commodities analyst Vivek Dhar.

Gold prices fell on Thursday as a stronger dollar and rates on imminent tightening by the US Federal Reserve weighed on sentiment, although losses for the safe-haven metal were limited by concerns that rising COVID-19 cases would slow global growth.

 

Spot gold fell 0.5% to $ 1,778.65 an ounce by 2:21 pm ET. US gold futures are down 0.1% to $ 1,783.1

 

Putting pressure on gold, the US dollar surged to nine-month highs after July Fed minutes showed that officials largely expected they would be able to ease stimulus this year, although consensus on other key issues seemed elusive.

 

"The only thing that is unclear is when this (cut) might happen. However, the cut has become the price of gold again," said Commerzbank analyst Daniel Breesemann.

 

Earlier data showed that the number of Americans filing new jobless claims fell to a 17-month low last week, underlining recent Fed officials' views of a labor market recovery.

 

Market attention is currently focused on the annual meeting of central bankers in Jackson Hole, Wyoming on August 26-28.

 

Talk of narrowing and fears of rising delta COVID-19 cases have heightened risk sentiment in broader financial markets, pushing investors towards safe haven assets.

 

“Gold certainly benefits from its safe haven status. While stock markets are dropping hard, gold is in demand again. Obviously, COVID's nerves are on edge, ”said OANDA analyst Craig Earlam.

 

"Going above $ 1,800 looks more achievable," added Earlam. "Gold will be under downward pressure in the medium term, but that won't stop it from taking advantage of the nervousness."

 

Gold prices are up about 6% from the more than four-month low of $ 1,684.37 hit last week.

 

Elsewhere, silver fell 1.4% to $ 23.15 an ounce.

 

Platinum fell 2.5% to $ 969.88 an ounce and palladium fell 4.8% to $ 2311.19 an ounce, hitting its lowest level since mid-March at $ 2299.57.

European markets rallied on Friday, aiming to end their tenth straight positive session as investors gauged global economic data and the rise in Covid-19 cases.

 

Asia-Pacific stocks fell in trading on Friday, with South Korea's Kospi leading major markets as the stocks are tied. The Samsung conglomerate fell after the release of the company's heir from prison.

 

In the United States, stock futures have not changed much in the premarket after the S&P 500 climbed to a new all-time high on Thursday and US investors digest the economic uncertainty.

 

Weekly jobless claims were in line with expectations - 375,000, which was the third consecutive decline, while producer prices in July rose by 0.9% against the forecast of 0.5%, which casts doubt on reaching a peak in inflation.

 

Overnight cumulative performance of MSCI global equity markets reached a new all-time high.

 

“The markets may be more focused on the state of affairs with regard to Covid right now, in particular the proliferation of the Delta variant,” Xian Chang, chief investment officer of wealth management at HSBC, said in a memo.

 

“But no matter where you look, the general consensus (and hope) is that the widespread success of vaccination programs will allow the recovery story to continue into the second half of this year.”

 

In Europe, Adidas sold Reebok for up to $ 2.5 billion to Authentic Brands as the German sportswear giant decided to focus on its central brand. Adidas shares up 2.6% on Friday.

 

Ipsen shares fell more than 11% to the bottom of the Stoxx 600 after a French pharmaceutical company withdrew a US drug application.

 

At the top of the European blue-chip index, Vestas Wind Systems rallied 3.8%.

Robinhood shares soared again on Wednesday, bringing the new public stock trading app to nearly 120% weekly growth.

 

Robinhood is up 65% Wednesday to about $ 77.00 a share. Stocks are currently on hold due to volatility.

 

Robinhood Stock makes up for its failed Nasdaq debut last week. The share price was $ 38 per share, which is the lower end of the offer range. It opened at that price on Thursday, but then fell 8% on the first day and mostly traded below that price until Tuesday, when it rose more than 24%.

 

It is unclear what exactly drove the shares higher on Wednesday; however, the attention of popular investor Katie Wood tends to benefit rising stocks.

 

On Tuesday, ARK Invest Wood acquired 89,622 HOOD shares in the ARK Fintech Innovation ETF, which is approximately $ 4.2 million based on Robinhood's closing price of $ 46.80. This position adds to the roughly 3.15 million shares Wood has bought from Robinhood since the company debuted last week.

 

Robinhood is also gaining attention from retail investors. HOOD is the number one ticker on WallStreetBets tracker Swaggy Stocks, with over 700 mentions on Reddit chat.

 

"Unpopular opinion: Robinhood still has the best mobile experience," says one post with 4600 interactions.

 

"This is the story of order flow payments with cryptocurrencies as a kick-start," Stephanie Link, chief investment strategist at Hightower, said Wednesday in an interview with CNBC's "Squawk Box". “In the second quarter, total revenue was up five to ten percent over the first quarter. But if you look at the payment data for the flow of orders, in the second quarter, that figure fell 23%. So that tells me that the payment for the order flow is very competitive, but the crypto kicker is probably helping Robinhood and they are probably gaining share. "

 

"For all that, it is very expensive. It is difficult to understand the estimate at 11 times the price-to-sales ratio," added Link. Online brokerage Charles Schwab is trading at 7x.

 

HOOD was also one of the most traded stocks on Fidelity on Tuesday.

 

Robinhood is a five-time CNBC Disruptor 50 and topped the list this year.

European stocks fell on Friday after the previous session closed at record highs as investors reacted to another flood of corporate earnings and economic data.

 

The Stoxx 600 pan-European index was previously down 0.4%, with most major stock exchanges and sectors in negative territory. Travel and leisure stocks fell 2.5%, resulting in losses, while chemicals were up 1%.

 

Asia Pacific stocks fell again on Friday, approaching their worst month since March 2020, as volatile trading in Chinese tech stocks continued amid regulatory action in China and the fall of Hong Kong's Hang Seng.

 

In the US, stock futures fell on the back of a fall in Amazon stock, but the S&P 500 is still on track for its sixth positive month in a row.

 

Rapid spread of delta Covid-19 and regulations in China continued to weigh on European sentiment, but European stocks continued to rise for the sixth straight month.

 

Profits continued to be at the center of: BNP Paribas, Renault, Air France-KLM and IAG among the big companies reporting on Friday.

 

BNP Paribas reported 26% annual net income growth in the second quarter to 2.9 billion euros ($ 3.44 billion), exceeding market expectations amid recovery in business activity. The French lender's shares fell 1.2%

 

Renault reported a quarterly net profit of € 354 million for the first half, compared with a significant loss of almost € 7.3 billion in the same period last year when the pandemic halted production across the industry. The French automaker predicts full profits in 2021, despite the challenges posed by the global semiconductor shortage. Renault shares fell 3%, however.

 

L'Oréal said Thursday that sales growth accelerated in the second quarter, due in part to a surge in cosmetics sales in the US after restrictions eased. Shares are up 0.3%.

 

At the top, the Stoxx 600 Euronext added 5.3% after its income statement. Italy's UniCredit rose 3.1% after a sharp fall in profits in the second quarter.

 

At the bottom of the index, UK quality assurance firm Intertek is down 8% after first half results.

 

In terms of data, the eurozone economy showed a sharper-than-expected recovery in the second quarter and grew 2% qoq, according to the statistics office of Eurostat.

 

Eurozone inflation rises to 2.2% in July, the highest since October 2018 and above the European Central Bank's target of 2%. However, ECB politicians have indicated that they expect temporary deviations.

 

Germany's annual consumer price inflation jumped to 3.1% in July, the highest level since August 2008, prompting a leading service sector union to call for an immediate and substantial wage increase.

Bitcoin is in a narrow range as attention is focused on the US Federal Reserve's statement on monetary policy on Wednesday, which could provide clues about the central bank's course of action and cause volatility in financial markets.

 

The cryptocurrency is trading in a narrow range of $39,400 to $41,300 from Monday's European trading hours, data from CoinDesk 20 show.

 

"The market is completely neutral ahead of the Fed meeting with small spot purchases," said Brian Tehako, IT director at Warwick Capital Management. "Traders are waiting for the Fed's announcement."

 

According to singaporean company zCP Capital, this event is likely to cause a reaction of the binary market. Binary events are dramatic events that cause large movements in any direction.

 

"If the Fed remains "pigeon" (continued the bias towards stimulus), cryptocurrencies will have the greatest growth potential, at least until September, given the oversold that we have seen compared to other macro markets since the publication of the consumer price index in May," the company said in a Telegram channel.

 

Bitcoin dropped from $58,000 to nearly $30,000 in the eight days to May 19. The sell-off comes after official data released on May 12 showed the U.S. consumer price index rose to its highest level in nearly three years. This renewed fears about the Fed's premature winding down - the gradual winding down of incentives to increase liquidity.

 

However, while bitcoin fell due to fears of Fed tightening, traditional markets remained resilient, while gold rose by 7.8% in May. Shares also remained in value.

 

As a result, bitcoin and cryptocurrencies in general look relatively cheap before the Fed meeting, which can bring them the greatest benefit in the case of a "pigeon" decision.

 

On the other hand, the "hawkish" surprise can negatively affect the prices of assets. If they are "hawkish" on Wednesday, all bets will be made, and we expect that the market will return to recent lows," - said in the "CCP Capital.

 

According to Patrick Heusser, head of trading at Crypto Broker AG, "painful" trading can be a reaction to risk reduction, leading to the growth of safe currencies such as the franc, yen and US dollar, and the sale of commodities and stocks. "Reducing risk can also bring losses to bitcoin," Heusser said.

 

The cryptocurrency market seems to have tuned in to a surge in volatility after the Fed meeting." "The cryptocurrency market looks like a long range before this event," Denis Vinokurov, head of research at Synergia Capital, told CoinDesk.

 

Gamma refers to the rate of change in the option delta - the sensitivity of the option price to changes in the price of the underlying asset. That is, the gamma measures the rate at which the price of the option changes in the spot market changes.

 

Being a long range means holding an optional position with a net range of more than zero. Simply put, the position will benefit from increased volatility in the price of the underlying asset.

Asia-Pacific stocks mostly fell on Tuesday as investors reacted to the release of revised first-quarter Japanese gross domestic product data.

 

Japan's Nikkei 225 fell 0.19% to close at 28,963.56, while the Topix rose about 0.1% on the day to 1,962.65.

 

Revised government data released on Tuesday showed that Japan's economy contracted 3.9% in the first quarter, an improvement from an initial estimate of a 5.1% contraction. Revised gross domestic product versus economists' median forecast for 4.8% contraction in Reuters poll.

 

“We expect the economy to experience another contraction in the second quarter, given the expanded restrictions, which will put severe pressure, especially on the services sector,” Makoto Tsuchiya, an assistant economist at Oxford Economics, wrote Tuesday. “However, we remain optimistic that the pace of recovery will pick up in the second half as domestic demand recovers, supported by increased vaccinations, while external demand should continue to support the manufacturing sector.”

 

Mainland China stocks closed lower, with the Shanghai composite shedding 0.54% to 3,580.11 and the Shenzhen component dropping 0.98% to 14,716.98. In Hong Kong, the Hang Seng Index fell about 0.1% in the last hour of trading.

 

Elsewhere, South Korea's Kospi fell 0.13% to close the day at 3,247.83. Australia's S&P / ASX 200 closed 0.15% higher at 7,292.60

 

MSCI, the largest stock index in Asia Pacific, fell 0.23%.

 

The US Dollar Index, which tracks the dollar against a basket of peers, was at 90.158 after an earlier low of 89.955.

 

The Japanese yen traded at 109.48 against the dollar, above levels above 110 against the dollar last week. The Aussie changed hands at $ 0.7741, largely holding up after rising below $ 0.768 last week.

 

Oil prices were lower in Asian afternoon trading and international benchmark Brent crude oil futures fell 0.62% to $ 71.05 a barrel. US oil futures fell 0.61% to $ 68.81 a barrel.

Deutsche Bank, Germany's largest lender, said the U.S. may expect one of the worst inflation periods in history, arguing that higher government spending and soft monetary policy could combine to create conditions similar to previous episodes of the 1940s and 1970s.

 

According to a report released Monday, the pressure is compounded by the roughly $2 trillion in "excess savings" that consumers have accumulated over the past year, when many businesses have been closed and travel has mostly closed.

 

"Consumers will definitely spend at least some of their savings when the economy reopens," wrote Deutsche Bank chief economist David Falkerts-Landau, along with Peter Hooper, head of global economic research, and Jim Reed, head of case studies. a very real spectre of inflation driven by consumers."

 

Inflation is closely watched by investors in cryptocurrency, who consider bitcoin as a means of protection against the depreciation of the dollar.

 

But bitcoin has also sometimes traded in sync with risky traditional assets such as equities, and Deutsche Bank's authors have warned that when inflation eventually emerges, the Fed may have to react strongly, which could "cause a significant recession and trigger a chain of financial disasters around the world."

 

The warning stands in stark contrast to the repeated assurances by Federal Reserve Chairman Jerome Powell that higher inflation is likely to be "temporary" and will stabilize over time as the economy recovers from the recession caused by last year's pandemic.

 

"The lack of preparation for the return of inflation is a cause for concern. Even if some inflation is temporary today, it can affect expectations as it did in the 1970s," the report says. "Even if they are implemented for only a few months, these expectations can be difficult to contain with such a strong stimulus."

• One signal to be drawn to is the output gap, which measures the imbalance between supply and demand as a percentage of the economy's gross domestic product.
• Deutsche Bank expects the U.S. output gap to exceed 2 percent, the highest in more than two decades as demand exceeds supply, leading to higher prices.
• After the 2008 financial crisis, "the amount of U.S. stimulus was insufficient to close the output gap, and the recovery was unnecessarily slow."
• But the widening output gap in the 1960s preceded high inflation in the 1970s, which was exacerbated by a series of oil price spikes.

 

Deutsche Bank estimates that legislative stimulus packages amounted to more than $5 trillion, or more than 25% of gross domestic product. The U.S. federal budget deficit is likely to be between 14% and 15% of GDP in both 2020 and 2021, up from about 10% in 2009.

 

During World War II, economists said, the U.S. deficit remained between 15% and 30 percent for four years.

 

"While there are many significant differences between the pandemic and world war II, we should note that annual inflation was 8.4% in 1946, 14.6% in 1947 and 7.7% in 1948 after the economy returned to normal and deferred demand was released," the report says.

 

The current political climate means that job growth may be a higher priority in the coming years than containing inflation.

 

Unlike in the early 1980s, when then-President Ronald Reagan supported Fed Chairman Paul Volcker, who "put the economy to the test to suppress inflation, today this problem is seen as much less important than unemployment and broader goals of achieving greater equality in income and wealth," the report said.

 

"The Fed's retreat from pre-emptive action under the new policy is the most important factor that increases the risk that it will be far behind schedule and late to effectively deal with the problem of inflation without major disruptions," the authors write.

Former US Treasury Secretary Lawrence Summers said that cryptocurrencies can remain a feature of global markets as something akin to "digital gold", even if their importance to the economy remains limited.

 

Speaking at the end of the week when Bitcoin was on the decline, Summers told Bloomberg Television Wall Street Week with David Westin that cryptocurrencies offer an alternative to gold for those looking for an asset, “separate and separate from the day-to-day work of government. ... "Gold has long been a major asset of this kind," said Summers, a paid member of Bloomberg. “Cryptocurrency has a chance to become an agreed upon form in which people who seek security store wealth. My guess is that the cryptocurrency will stay here, and will probably stay here as a kind of digital gold. "

 

 

According to Summers, if cryptocurrencies become even one third of the total value of gold, it will be "a significant increase in value over current levels," which means that "there is a good prospect that cryptocurrency will be part of the system for a long time."

 

Bitcoin is often compared to the yellow metal in the crypto community, with varying estimates of whether their total market value can be and how quickly to level out.

 

Yasin Elmanjra, a cryptanalyst at Cathie Wood's Ark Investment Management LLC, said earlier this month that if gold's market capitalization is expected to be around $ 10 trillion, “It is possible that Bitcoin will reach gold parity in the next five years. ... “With a Bitcoin market capitalization of about $ 700 billion, this could mean a price increase of about 14 times or more.

 

But Summers said that cryptocurrencies are irrelevant to the economy as a whole and are unlikely to ever be used for most payments.

 

Summers' comments were echoed by Nobel laureate Paul Krugman, who doubted the value of cryptocurrency as a medium of exchange or stable purchasing power, but said that some forms of it may continue to exist as an alternative to gold.

 

“Cryptocurrencies will crash soon? Not necessary, "Krugman wrote in the New York Times. "One fact that makes even crypto skeptics like me ponder is the longevity of gold as a highly valued asset."

 

Summers also said that President Joe Biden's administration is moving in the "right direction" by asking companies to pay more taxes. He argued that politicians in the past have not been guilty of applying "too strong antitrust" regulation, although he cautioned that it would be "grossly wrong" to target companies simply because of increased market share and profits. Returning to my concerns about the US economy. the risk of overheating, Summers said, the Federal Reserve needs to be more aware of the inflationary threat: "I don't think the Fed's forecasts reflect the potential severity of the problem." "I'm worried that with everything that's going on, the economy might pick up a little."

What if the cryptocurrency market collapsed tomorrow? it could happen. What will investors do? There are three very common things: selling your crypto assets, panicking, and then staying away from the crypto market for a long time.

 

These are three of the worst moves you can make during the collapse of the crypto market. Here's a closer look at why you shouldn't panic, sell, and stay away.

 

The crypto market is very volatile, and the market crash can happen at any given time, leading to a sharp drop in prices. While these accidents have underlying causes, it usually causes tsunami panic among investors, leading to further price declines.

 

According to the latest news, crypto-currency is currently bursting, where some major cryptocurrencies, including Bitcoin, Ethereum and Dogecoin, are moving through a significant drop in prices. Ethereum fell more than 40%, following Dogecoin and Bitcoin, due to repression in China.

 

This can again cause a wave of extreme panic and stress among investors. However, there are certain things that investors need to be aware of to help them through this accident. In times like these, it's important to remember what to avoid rather than worry about what to do. Here are three things you don't need to do if the crypto market falls.

3 Things not to do if the crypto market falls

 

The first emotion that investors take on during a market crash is panic and stress. But investors should always be prepared for such market volatility and prepare. The crypto market often faces inevitable collapses that will have a larger cause.

 

When such accidents happen, your holding company may be vulnerable to significant falls. Although the overall market drop to 20%, your specific stocks may fall by more than 40% or more.

 

Take bitcoin, for example. At the time of writing, the price of bitcoin has fallen by almost 30%, which can cause a wave of panic among BTC holders. But if you want to continue investing in cryptocurrencies further, you have to be prepared for such falls and outfit yourself to deal with them without panicking.

 

Panic selling is a major mistake that most investors show during the cryptocurrency market crash. In this scenario, the investor decides that he wants to sell everything they have in the market to reduce their losses. They do this without even considering the quality, efficiency or long-term effectiveness of their holdings, which is one you shouldn't do if the crypto market falls.

 

The blockchain market is subject to fluctuations, and this is quite natural. If you have made a solid investment, then manage them well and stick to the HODL method, the process of boasting your assets. By holding on, you will most likely see a good return on your investment over time.

 

Although, in fact, the sudden collapse is scary and causes a wave of panic in the market, it does not mean that you should take immediate action and sell it in a hurry and agree to less. Sometimes it is better not to do anything and wait until the wave clears. That's why patience is a necessary quality that any crypto-investor should have.

 

In addition, panic sales can also make the situation much worse during a market crash. Suddenly, growing sales activity will further chip away at market values.

 

Selling your purchases makes sense if there have been changes, in particular, the competitiveness of the cryptocurrency, the lack of company development or lack of transparency in future prospects. However, it is advisable to hold patiently during a market crash rather than jump on the "sell everything" bandwagon.

 

The crypto market is volatile, which not only means that it is prone to sudden failures, but also means that there will be sudden ups and downs after the market crash. The biggest collapse of the Bitcoin market undoubtedly occurred in March 2018, when BTC fell by more than 32%, followed by a collapse in March 2020 caused by a global pandemic and panic sales.

 

But the market rebounded in 2021, with BTC hitting a record high of $64,863.10 in April. Thus, hanging on to your crypto holdings during a market crash can bring reasonable or even substantial returns.

 

Therefore, never forget that after a huge sale, most cryptocurrencies, especially those that have a high market capitalization, will bounce back. It is also time for investors to expand their portfolios by looking at coins that have attractive prices.

 

The advice for investors is to maintain an online portfolio of cryptocurrencies that they would like to buy. Ideally, these cryptocurrencies should have excellent growth potential, high market capitalization, and are backed up by a strong community. Once the market recovers, look for coins trading at attractive prices, do a detailed study of its volatility and price rally, and grab an opportunity when you can.

Things not to do if the crypto market falls: The Last Word

 

Market corrections and accidents can be extremely disturbing and even scary, and just the thought of losing a hard-earned savings can drive you to follow the wrong crowd, ending up in the worst-case scenario. But on a positive note, investors often forget that a market crash can also open up new opportunities: To be successful in the long run, you need to be patient, level-headed, and understand that market fluctuations are part of the game.

 

Cryptocurrency is really a bubble that can burst at any time, but it can just as quickly recover to a profitable level. So always be aware of the above 3 things you shouldn't do if the crypto market falls, and strategically manage your investment journey for good returns.