Crypto market crash: Investments slow down, but trust in BTC, ETH remains

moneycontrol.com:

With the recent cryptocurrency market correction, investors in India have taken a breather from stacking their portfolios. However, in the long term, they remain bullish on the top two cryptos, Bitcoin and Ethereum.

After Terra’s debacle that led to LUNA trade at $0 last month, other tokens too corrected heavily. This was in tandem with the plunge in US tech stocks.

The global crypto market cap was down 5.27 percent at $1.24 trillion at the time of writing, CoinMarketCap data showed. The market crash comes from the fear of a global recession.

Moneycontrol spoke to investors who have placed their bets on cryptocurrencies and most of them said they have gone slow on their investments given the bearish cycle but exiting the crypto market altogether is not on the cards.

What are investors up to?

Hitesh Malviya, the founder of venture capital firm IBC Capital, said his investments have slowed down because of various economic factors, one being reports of a looming global recession, adding that he has planned investments and not everything is in cryptos.

While some are cutting down on crypto investments at this time, others are shifting their focus to other digital assets, ultimately remaining in the Web3 space.

Raj Kapoor, the founder of India Blockchain Alliance, said that he changed tracks immediately after the crash and dived into staking and yield farming, calling them the “best hedge against crypto assets”.

Just as investors in the Web2 space earn interest on their saving bank deposits, staking and farming are the ways to earn interest in the De Fi or decentralised finance space, except for the interest rates on offer. While interest rates offered by banks on savings accounts can range anywhere between 3.5 percent and 7