Crypto On April 11: Market Falls But Inflation May Drive Investor Interest

The cryptocurrency market traded in red Monday as top coins Bitcoin and Ethereum plunged sharply. However, industry insiders believe that the ongoing inflation is the time for the crypto industry to gain traction among investors.

The global market cap was down 1.94% at $1.94 trillion as of 3. 18 a.m. ET, CoinMarketCap data showed.

Bitcoin dipped 1.18% to $42,262. Ethereum, too, plunged 2.26% to $3176. Barring a slight uptick in stablecoins Tether and USD Coin, all other top 10 tokens traded in the red. Meme cryptos Shiba Inu and Dogecoin too plunged.

Industry insiders, however, believe that this could be a good time for investors to shift their interest toward cryptos.

"The global inflation level is rising at a hurried pace. This could shift investor attention to the crypto space as a safe haven against the rising inflation which could send crypto prices soaring," WazirX trade desk told International Business Times.

On the other hand, crypto exchange CoinDCX said, "As economic uncertainty persists, Bank of America strategists anticipate that the lull in traditional markets will serve as a boon for crypto."

"With that, the crypto market may witness a stronger performance with the growing regulatory backing encouraging greater trust and credibility in crypto coupled with crypto expected to mirror safe-haven characteristics in the lacklustre traditional market," the CoinDCX research team told International Business Times.

In other news, global cryptocurrency exchange Binance has reportedly received in-principle approval from Abu Dhabi Global Market to operate as a broker-dealer in virtual assets.

The crypto market is extremely volatile and experts recommend investors not make decisions based on the sudden shift in prices.