Close to five years of upward gains in cryptocurrency are unravelling across the global market, leaving investors concerned.
The downturn has come in hard and fast over the last couple of months, otherwise known as ‘crypto winter’.
Data from Coingecko found that the crypto market has lost approximately US$2 trillion in value in the last 4 months, but Bitwise chief investment officer Matt Hougan says he believes it has been in a downturn for longer, since the start of January 2025.
Bitcoin, the flagship of crypto, has taken a particular hit, falling to around US$62,000 on Thursday this week, after an all-time high in October of last year.
Financial advisors are suggesting that investors should likely not hold more than 5% of their portfolios in crypto and keep it diversified across other assets such as stocks and bonds.
“In my opinion, if you’re optimistic about bitcoin long term, then [this drop] is a buying opportunity,” said Barry Glassman, CFP, founder and president of Glassman Wealth Services and member of the CNBC Financial Advisor Council.
