Crypto Market Crash: Veteran investor Jeremy Grantham’s big claim regarding Bitcoin, said- its importance will gradually end.

Crypto Market Crash: Business Desk: The bad days of Bitcoin, the world’s largest cryptocurrency, have started. The price of Bitcoin slipped below the important level of $60,000 and reached $59,934. Meanwhile, famous investor and co-founder of GMO Jeremy Grantham has made a big claim about Bitcoin. He said that Bitcoin has no real or practical use and with time its importance may gradually disappear. His statement has sparked a new debate in the crypto market which is already under pressure.

‘Bitcoin is just speculation, has no real value’

In an interview, Jeremy Grantham said that Bitcoin has no intrinsic value. According to him, people do not use it for everyday shopping or payment. Describing it as a speculative asset, he said that even in a strong bull market, Bitcoin could not perform as expected. He claims that its importance will gradually decrease in the coming years.

However this is the personal investment opinion of Jeremy Grantham. Many investors and institutions around the world view Bitcoin as a digital asset and alternative investment.

Bitcoin reaches below $60,000

According to CoinMarketCap, the price of Bitcoin fell by 2.66% to $59,934.04. With this, its market cap decreased by about 2.75% to 1.2 trillion dollars. Not only Bitcoin, the entire Crypto Market is also under pressure. The total crypto market cap fell to $2.06 trillion, which is considered to be the lowest level since May. The second largest cryptocurrency Ethereum also recorded a decline of 0.77%.

Why is Crypto Market falling?

Market experts believe that the rising inflation figures in America have increased the concern of investors. There is a fear that the US Federal Reserve may keep interest rates high for a long time. High interest rates have the greatest impact on risky investments and cryptocurrency also falls in this category.

Apart from this, WazirX founder Nischal Shetty says that many investors are now withdrawing money from crypto and turning to AI and technology stocks. The rise in shares of AI companies in recent months has also attracted the attention of investors.

ETF outflow increased pressure

Continuous outflow from Bitcoin ETF has also increased the weakness of the market. When money comes out of ETFs, selling pressure increases in the market, which affects prices. Due to weak investment sentiment and less buying, most of the major cryptocurrencies including Bitcoin are currently trading in the red.

What is the signal for investors?

Experts believe that fluctuations in the crypto market are not new. In such a situation, instead of taking decisions based on any single statement or short-term decline, investors should take decisions keeping in mind the risk, investment period and their financial goals. At present, the market is keeping an eye on US economic data, the next policy of the Federal Reserve and the trend of investment in Bitcoin ETF, which can decide the future direction.

Why is Crypto Market falling?

Experts believe that due to rising inflation in America, the possibility of the Federal Reserve keeping interest rates high for a long time has increased. According to Nischal Shetty, founder of WazirX, investors are now withdrawing money from crypto and investing it in AI and tech stocks. Apart from this, continuous outflow from Bitcoin ETF and buying by weak investors has also increased the selling pressure in the market.

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