FxBrokerReviews.org – Cryptocurrency, once the most volatile asset globally, has now become the most passive. It has perplexed investors over the last five months by going virtually nowhere in terms of price. Since mid – June, the Cryptocurrency price has been stuck around $20,000, unwilling to fall any further or stage a meaningful recovery.
Why Did Crypto Crash?
Unlike conventional funds such as company stock, where market prices are impacted by company performance, cryptocurrency has no underlying security. This implies that its market prices are entirely based on investor supposition that it will increase or decrease in the future. As a consequence, the value of bitcoin can fluctuate dramatically within 24 hours. At the time, individuals are selling their crypto to decrease their potential losses due to high inflation and a living cost emergency.
Also read: How To Start Cryptocurrency Trading?
In addition, several events have prompted the cost to vary:
Negative Stories
A slew of bad reports and threats of additional regulation has pushed bitcoin’s price down.
These are some examples:
- In November 2022, there will be a cryptocurrency exchange. FTX was in trouble after its competitor Binance backed out of a deal to purchase the company.
- Celsius Network, a major US cryptocurrency financing company, suspended withdrawal effects and transactions in June 2022, citing “severe” conditions.
- In June 2022, Binance, one of the world’s largest crypto exchanges, halted bitcoin withdrawals, accusing it of a “stuck payment” that was affecting a backlog.
- It was rumored as early as 2022 that Russia might prohibit cryptocurrency transactions. However, following the invasion of Ukraine, there were pleas for cryptocurrency exchanges to prohibit Russian transactions.
- In May 2021, Tesla CEO Elon Musk announced that the electric car company would no longer tolerate digital payments due to concerns about the environmental impact of cryptocurrency “mining” – the computing power required to create cryptocurrencies such as bitcoin.
- In June 2021, Chinese banks and disbursement institutions were warned to stop allowing crypto transactions, and the Chinese government prohibited cryptocurrency mining. Then, in September 2021, all crypto exchanges were declared illegal, making bitcoin and other cryptocurrencies illegal.
- In June 2021, then-US President Donald Trump characterized bitcoin as a “scam” competing with the dollar to be “the world’s medium of exchange.”
- Over the years, Federal agents have captured millions of dollars in bitcoin from criminals.
- In August 2021, the U.K.’s Financial Conduct Authority effectively blocked Binance, one of the largest cryptocurrency exchanges. Following suit, central banks such as HSBC and Santander barred customers from making installments to Binance.
- The International Monetary Fund issued warnings to countries that use cryptocurrencies as legal tender in the same period, saying pervasive use would jeopardize “macroeconomic stability” and could jeopardize financial integrity.
- Crypto heist: In August of last year, a hacker stole $600 million in a cyber attack on the crypto platform Poly Network, only to come back more than half of it four days later, claiming they did it “for fun” and to “expose the security vulnerabilities” in the system before others.
Also read: Binance – FTX Deal 2022
When Will Crypto Crash?
Bitcoin fell to its lowest level since December 2020 as cryptocurrency prices fell again this weekend. The price drops followed similar price movements just one month ago.
After a holiday in which the cryptocurrency market lost more than $200 billion and U.S. crypto lender Celsius Network stopped all withdrawals, bitcoin prices fell by around 9% in the last 24 hours to $20,500 or INR 16,00,530.
As Bitcoin (BTC) tumbled below $33,000 for the first time in about a year this week, and Ethereum (ETH) and Cardano (ADA) also fell, the crypto market appears to be crashing – or at least experiencing a significant correction.
Given the old investment adage “buy the dip,” shareholders may be trying to get a piece of the volatile cryptocurrency market in the hopes that this is a temporary slump rather than a long-term market crash.
Will Crypto Survive Crash And Recover?
The crypto market has previously rebounded, and if the stock market can be used as an instance, it is likely to do so again.
The Guardian linked the drop in cryptocurrency values, which Bitcoin led, to the demise of a coin called Terra. Terra was meant to be a stablecoin. In other words, its value was linked to the value of the U.S. dollar. Terra’s weight plummeted in one week from more than $50 billion to virtually nothing. With this occasion, the value of other stablecoins began to fall, and then the value of bitcoin began to fall.
While Terra’s failure was a catalyst, other economic factors, such as inflation and rising interest rates, contributed to the crypto crash. As per Guardian, “when inflation rises, bitcoin falls, and as economic prospects dim, so does the possibility of a digital revolution.”
The cryptocurrency market may fare poorly shortly. Bitcoin and other cryptocurrencies continue to decline in value, albeit at a much slower pace than in early 2022.
List Of Crypto Crash Coins In 2022
The table below lists the top 5 cryptocurrencies to buy during the crash:
- TamaDoge – Best crypto to buy during a crash
- Crypto Snack – Most undervalued crypto token
- Battle Infinity – Best gaming token of 2022
- Lucky Block – Top crypto token to buy in 2022
- XRP – Best crypto to buy after a crash (under $1)
Take Away
It is still possible to return to the bitcoin and other cryptocurrencies downturn if you are not a risk-averse shareholder. To boost your odds of a high rate of return, stick to coins with a well-known reputation and a large market cap. You can now buy cryptocurrency on any of the best crypto exchanges for 2022.
