KEY POINTS

  • Bitcoin, Ether slide 
  • Top coins dip
  • Market cap goes down

The cryptocurrency market traded lower Thursday. Industry experts believe that a "lack of economic catalysts and persisting inflation" has led to the downside of the market.

The global market cap was down 0.97% at $1.25trillion as of 4.10 a.m. ET, CoinMarketCap data showed.

Bitcoin was down 0.21% at $29,661.24. Ethereum, too, plunged 2.73% to $1920. Barring a slight uptick in stablecoins Tether and USD Coin, all other top 10 tokens traded lower. Meme cryptos Shiba Inu and Dogecoin too plunged.

WazirX said, "The crypto market sentiment continued to remain in the “extreme fear” zone. The trading volumes on exchanges, however, have picked up in the last couple of weeks or so."

On the other hand, CoinDCX said, "A lack of economic catalysts and persisting inflation has led many to believe that a recession is around the corner, with funds cautious and conservative in their deployment of further capital."

"Market corrections may not always necessarily be negative — they can also be healthy in resetting market valuations and investor expectations within a longer-term market advance," the Indian exchange added.

Meanwhile, JPMorgan has said that it sees a "significant upside" to the price of bitcoin, the world's largest cryptocurrency. The global investment bank estimated that the token would rise 28% "going forward" and cryptos will replace real estate as its “preferred alternative asset class along with hedge funds.”

The crypto market is extremely volatile and experts recommend investors not make decisions based on the sudden shift in prices.

Representations of virtual cryptocurrencies are seen in this illustration taken November 28, 2021.
Representations of virtual cryptocurrencies are seen in this illustration taken November 28, 2021. Reuters / DADO RUVIC
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