Crypto market crash continues - Is it time to buy or sell?

May has been a stress-filled month for cryptocurrency investors. The world's largest cryptocurrency Bitcoin came to an almost 4-month low last month. Earlier Bitcoin had plunged over 50 per cent to $30,066 from its record high of $64,895 hit on April 14. The coin linked to the Ethereum blockchain network, Ethereum, dropped nearly 57 per cent to $1,850, its lowest level since late January.

There were always a lot of uncertainties in this class of assets. However, this has not deterred Indians from investing in this asset and today India has more than 10 million cryptocurrency investors as of April 2021. With crypto prices recently seeing a substantial pullback, the Reserve Bank of India also clarified on 31st May 2021 that bankers cannot cite the Supreme Court order of 2018 to warn users for trading in cryptocurrency, as RBI has not issued any guidance since 2018.

S Ravi, Managing Partner, Ravi Rajan & Co. and former Chairman of Bombay Stock Exchange, says, 'Speculative trading is not the right form of investment, as regulators have still not come out with clear guidelines, which would decide the fate of cryptocurrency.'
With Elon Musk's tweet, the decline in the cryptocurrency world started, where he stated that Tesla will not accept Bitcoin as payments anymore. Musk stated that Tesla will no longer allow vehicle purchases using Bitcoin due to environmental concerns. Additional
China'sannouncement on banning financial institutions and payment companies from providing services related to cryptocurrency transactions also aggravated the fall in the market.