The world of cryptocurrencies has already collapsed. According to the data, the global cryptocurrency market cap has already fallen below $1 trillion. Ordinary investors are at risk to sell crypto in this condition. Market sentiment is still bearish. Bitcoin has dropped to the $22,000 level. Other cryptocurrencies have also fallen in price. What step should investors take in such a bearish situation? Should All Cryptocurrency Be Sold? What problem is it going to face?
Why Is Crypto Market Crashing This Year?
The cryptocurrency market is the global stock market reflection. A sell-off in the stock market on June 10 had a contagion effect as the crypto began to decline sharply.
This year, the global cryptocurrency market has fallen remarkably. Yet the global cryptocurrencies world has not gotten its expected profit. On the contrary, it has faced huge losses.
The Covid-19 and the Russia-Ukraine war are believed to be acting as negative catalysts behind this. In January of last year, the world of cryptocurrencies fell below $1 trillion. Crypto investors are at risk along with their loss is beyond all calculation.
Bitcoin, the world’s largest cryptocurrency, fell to $22,000 this June. Which is the lowest rate in 18 months. Bitcoin has fallen more than 25% in the past week. On the other hand, Ethereum, the world’s second most popular cryptocurrency, fell more than 33% last week to the $1,100 mark.
Experts’ Opinions :
The CoinDCX research team said,
“Investors are going ahead with risk for the rising expectations of the Federal Reserve raising interest rates to fight current inflation,”
“A correction is in progress. Internationally, stocks and inflation rates are also a major concern for investors. In the US, it was a 40-year high of 8.6% and in the UK 9%; Rising interest rates are a growing concern across major crypto countries,” said Rajagopal Menon, Vice President of WazirX.
Darshan Bathija, CEO and co-founder of Vauld stated, “Investors are concerned that if inflation does not start to ease soon, the Fed (Solving Federation) will likely have to make more tightening decisions at a faster pace than expected.”
What’s next for cryptocurrency investors?
Experts say that cryptocurrencies are at this point where the bear market has entered but prices will eventually rise.
Kumar Gaurav, CEO, and founder of Cashaa said, “Such corrections have happened in previous years as well. Investors who are going for Those who bought will panic when the price drops higher. But they should remember that we are in a bear market and eventually prices will rise again.”
Top Coins’ Impact On The Market :
The top coins like BTC, ETH, etc have seen their lower support level. Though a little upward trend was there temporarily. But the bullish run is not taking place within a good span.
BTC is struggling to get its valid rate. Whereas, ETH is focusing on the upcoming technological advancement. Where ETH is expected to perform in a much safer and quality technological field. Though focusing on this initiative became the reason for shifting the users to other platforms.
Other Issues :
On the other hand, money laundering has become a severe problem for the crypto market. Fraud and hacking are taking place on several platforms due to a lack of protection. The price fall has already impacted massively in a negative way. Money laundering is furthermore pulling down the crypto world with a long time impact.
Even in this bearish trend, top coins’ investors are scared of the market crash. During this bearish momentum, buyers are already buying but several investors are creating uneven selling pressure in this unfavorable condition. This unexpected sell-off became the reason for low resistance and weak support level. Ultimately, the market is not getting any growth catalyst to perform highly.
Though the experts’ predictions said that the global cryptocurrencies market could run a bullish trend for a long span in August. It is quite optimistic as BTC managed to retain its value from less than $20k to around $23k. Also, the second top coin ETH got its resistance at nearly $18k.
Additionally, the experts forecasted that by the end of 2022 the top coin BTC might trade at $32,812 and by the end of 2023, it could be more than $41k.