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Monday, August 22, 2022
Gulf News - UAE crypto investors await a Bitcoin rally - but it is not happening as prices drop under $21,500
Dubai: UAE investors holding Bitcoin and other crypto assets will just have to wait longer for a chance to cut their losses and make an exit. Over a few days, Bitcoin prices did seem good enough to push past $25,000 – or at the least stay at those levels. That’s not how it’s been panning out.
Early Monday (August 22), the main cryptocurrency is down by $43-$47 to $21,473 and looks primed for some more bleeding.
All of which is putting an investor like Shehnaz Anwar on the edge. “It’s been quite frustrating to not be able to withdraw as these are my life savings. It appeared ad hoc when the trading platform imposed arbitrary limits.
“It is even more upsetting when the price levels are significantly different from what is being shown on screen. With this level of chaos, it has dented my confidence. I plan to exit as soon as some stability returns to the market.”
But when would that be? Each time, there’s some hope of a turnaround, the Fed and the markets soon snuff out Bitcoin holders’ hopes. “Currently, the vast majority of those holding bought in at elevated levels, mostly at the $30k-$35k levels,” said a trader. “The way we see it, if Bitcoin closes anywhere near $30k, there will be quite a few investor exits.”
In the year-to-date, Bitcoin is down over 50 per cent. Compare that with gold, which is lower by just over 4 per cent. The S&P 500 is down 11.3 per cent.
The next break
The run up to $25,000 – and it did look as if that was a doable this month - was supposed to be the breakthrough investors wanted before a full-sized ‘crypto-winter’ set in. Now, these investors will be hoping that the latest decline will not go well below the psychologically key $20,000 mark.
Some UAE investors, however, are willing to wait. And they have not lost faith in the investment category.
According to Yasin Murtaza, “I have been unconcerned with the limits on withdrawals (by trading platforms). This happens in stock exchanges as well when downside limits are reached and investors are unable to sell.
“Crypto is still a new phenomenon and one that is set on revolutionizing the world. I am adding to my exposure at current levels.”
WITH CRYPTO , TAKE THESE STEPSSource: