Investors who have a long horizon should wait for crypto prices to recover

Those who don't anything to do with this highly volatile asset class may also throw in the towel

The Bloomberg Galaxy Crypto Index has declined 47.1 per cent over the past year and 75.6 per cent from its peak on November 9, 2021. Bitcoin, which had touched a peak of $67,734 on the same date, is currently trading at around $21,483, about 68.3 per cent lower.

Trouble in crypto universe

High inflation is forcing central banks across the globe to hike interest rates and roll back liquidity. With monetary conditions tightening, prices of most asset classes have corrected. Cryptocurrencies, which are highly volatile and don’t produce any earnings (unlike companies and stocks), have been hit hard. “The total