Altcoins, meanwhile, beat the crypto behemoth as Polygon zoomed more than 13 per cent. Ethereum rallied over 7 per cent to top the $1,450 mark in the last 24 hours.
The global crypto market cap rose more than 3 per cent to reclaim the $1 trillion mark. The total crypto market volume over the last 24 hours stood at $70.38 billion, registering a rise of more than 7 per cent.
The Crypto industry has been in the doldrums so far this year thanks to failing projects, rising inflation, geopolitical worries, and looming fears of inflation and rate hikes.
Market participants believe that it is too early to declare that the worst is over for the industry as the crypto market is headed for a prolonged winter, which may extend further, as more negative news flows in.
Avoid catching falling knives
Market experts said that investors should avoid catching falling knives and understand the fundamentals of tokens before investing.
Sathvik Vishwanath, Co-Founder & CEO, Unocoin, said investors should learn to dodge the falling knife in bear markets. “It is very important to understand and study the market globally,” he added.
Judging the tokens can be quite tricky but understanding the underlying technology, its utility and the team might be helpful, he added. “Investors who bought tokens after the project was fully launched have seen more stable returns.”
Though the near-term roadmap for crypto looks murky as more projects might fail and file for bankruptcy, the long-term prospects are bright and constructive, said others.
A few more crypto projects might go bust, especially from the DeFi segment that were structured around high-interest yields, said Khaleelulla Baig, Co-founder and CEO, Koinbasket. “We will also see a tightening of regulations.”
More pain or gain?
According to market trackers, the crypto market may disappoint more in the near term. They suggest that high-risk investors can consider market-leading gaming and Metaverse projects.
“The usual fall in a bear market is nearly 70 per cent from the highest point,” said Sathvik. “For long-term investors, this seems like a golden opportunity to average their cost and exit the wrong investments.”
On the other hand, Baig from KoinBasket sees a final leg of correction of up to 30 per cent within a quarter and says the market may remain range bound in the near term.
“Investors should focus on layer one projects that are available at a solid discount compared to their recent peaks, such as Bitcoin, Ethereum, Polkadot, Chainlink, and others,” he added.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)