London, UK, 4th March 2022, ZEXPRWIRE, A Blue Royal Investments broker, Lucas Hill revealed that, despite market volatility, $36 million has been invested into crypto investment funds this year. The news comes as a welcome sign for the crypto community, battered by the recent downturn in prices.
According to the broker, most of the investment into crypto funds came from institutional investors, who are increasingly looking to diversify their portfolios by investing in digital assets.
The broker also said that the biggest challenge facing the crypto market is volatility, which has caused several investors to pull out of the market. However, he added that he believes that the market will stabilize in the long run as institutional investors continue to invest in crypto funds.
This is a positive development for the crypto market, struggling in recent months. The downturn in prices has caused many investors to lose confidence in the market, and many have called for a “winter” to take hold of the market. However, this news shows that there are still institutional investors who believe in crypto’s long-term potential.
In the last month, cryptocurrency Volatility has been a hot topic. CBOE Global Markets, Inc. (NASDAQ: CBOE) and VanEck Associates Corp. withdrew their joint proposal for a Bitcoin-based exchange-traded fund (ETF) from the U.S Securities and Exchange Commission (SEC).
A few days ago, the SEC announced that it would delay its decision on a Bitcoin ETF proposal from SolidX Partners, Inc., and VanEck Associates Corp. until September 30th of this year. This was a setback for the proposal, but it didn’t stop some high-profile individuals from supporting the idea.
For example, billionaire investor George Soros has recently revealed that he has invested in cryptocurrencies and plans to do more of so in the future. This is a clear sign that institutional investors are still interested in crypto, even with current market volatility.
It’s clear that the cryptocurrency market is still in its early stages and that there will be plenty of volatility along the way. However, this news shows that there are still institutional investors who believe in crypto’s long-term potential and are willing to invest in it despite the current downturn. This is a positive sign for the market’s future, and we can only hope that prices will rebound in the coming months.
The different types of volatility and how they are affecting the market.
Volatility in the cryptocurrency market can be classified into three different types:
1) Systemic Volatility: This type of volatility is caused by external factors, such as government regulation, economic conditions, and geopolitical events.
2) Intraday Volatility: This type of volatility is caused by news events and technical factors.
3) Seasonal Volatility: This type of volatility is caused by recurring events, such as the end of the year tax season and the winter holiday season.
Most of the volatility in the cryptocurrency market is caused by intraday factors, such as news events and technical factors. This type of volatility can be extremely disruptive to the market and cause prices to swing wildly in either direction.
Systemic volatility is also a major factor in the cryptocurrency market and can be caused by several external factors. For example, government regulation and economic conditions can majorly impact the market, as can geopolitically events.
Seasonal volatility is another important factor in the cryptocurrency market. This type of volatility is caused by recurring events, such as the year tax season and the winter holiday season. These events can have a major impact on prices and can cause them to swing wildly in either direction.
The current state of the cryptocurrency market.
The cryptocurrency market is currently downswing, and prices have been steadily declining for the past few months. This downturn has caused many investors to lose confidence in the market, and many have called for a “winter” to take hold of the market.
However, some institutional investors still believe in the long-term potential of crypto and are willing to invest in it despite the current downturn. This is a positive sign for the market’s future, and we can only hope that prices will rebound in the coming months.
What can traders do to protect their investments from sudden drops?
One of the main thing’s traders can do to protect their investments from sudden drops is stop-loss orders. This order will automatically sell a security when its price falls below a certain level. This can help minimize losses in the event of a major price crash.
Another thing that traders can do is to diversify their investments. This will help reduce the risk of losing money in the event of a market crash.
Finally, traders can also stay updated on news events and technical factors that could affect the market. This will help them to make informed decisions about their investments and will help them to protect their capital from sudden drops in prices.
Disclaimer: Our content is intended to be used for informational purposes only. It is very important to do your own research before making any investment based on your own personal circumstances. You should take independent financial advice from a professional in connection with, or independently research and verify, any information that you find on this article and wish to rely upon, whether for the purpose of making an investment decision or otherwise.