If you are an old crypto investor or trader then you can understand that the rise and decline in crypto assets is normal and it happens occasionally. However, recently the crypto market crash has resulted in high-speed decline of crypto assets causing damage to many investors and traders.
If we go deep into this crash then we can see that the price of Bitcoin plunged to its lowest point since 2020. The large cryptocurrency exchange i.e. Coinbase, tanked in value. The collapse of cryptocurrency that promoted itself as a stable means of exchange and not just this, more than $300 billion was eliminated by this crash in cryptocurrency prices causing a huge decline in overall crypto assets.
The amount of panic created in people due to the price of Terra going 100% down is also the alleged reason for this market crash. The declining rate of the crypto assets that was seen in the start of May was compared to the market crash of 2018 by the people. According to the recent histories of market crashes, we have seen that the recovery takes some time. It can take a few months to get back where it was recently.
Popular Crypto assets and their high-speed of decline:
One of the most popular crypto currencies i.e. Bitcoin was also seen going down. The reason was that Terra crashed. According to the news, the founder of Terra tried saving it from crash by selling Bitcoin worth millions of dollars which was also the reason that we have the high-speed decline of this asset.
Another popular asset i.e., Ethereum was also seen going down. It went less than $2000 and is still below 2k and not yet recovered. Not just this, a cornerstone of the cryptocurrency ecosystem and the world’s biggest stablecoin, Tether, slipped away from its $1 peg that further resulted in the intensified worries during the 2022 crypto market crash. Stablecoins are supposed to be a relatively safe haven in the otherwise highly volatile crypto markets. They are kept stable by being pegged to other assets including fiat money like the dollar and tangible assets like gold or through an algorithm. But, the recently experienced decline has caused major trust issues in most of the people. Solana, on the other hand, has also reached its lowest price of 2022.
A lot of people have lost trust and interest in crypto assets after watching the horrible drop down of the most popular crypto assets. Not just this, but the newcomers in the crypto world who lost their investments decided to take their steps back from the crypto world. A few countries were even seen imposing a ban on crypto currencies due to the 2022 market crash. However, the experts and old bees know that these things keep on happening in the crypto market and we need to cope up with them.
We don’t have any clear idea about how long this crypto’s collapse might last. A lot of crypto assets prices have typically rebounded from major losses, though in some cases it can take from several months to years in restoration or to reach at the highest point.