Crypto Crash Of 2022 & What It Means For The Market

Written by syeda | Published 2022/06/21
Tech Story Tags: future-of-finance | brick_trade | crypto-crash | cryptocurrency | crypto | crypto-crash-2022 | cryptocurrency-investment | crypto-news

TLDRSome coins have lost more than 1,000% in value this year and some have lost 99% of their value. The price of Bitcoin and other cryptocurrencies has crashed, and it could be a while before we see a recovery. There is no one-size-fits-all answer that applies to everyone. But we can still try to make some educated guesses about what might happen after the crash ends. The longer the correction lasts, the more likely it will be followed by a new bull run. Media coverage can have a big impact on how people view cryptocurrencies.via the TL;DR App

The content of this story DO NOT represent the views of HackerNoon and are meant as information only from the lens of the independent contributor. Please DYOR before investing
The cryptocurrency market has been on a wild ride this year, with some coins gaining more than 1,000% in value and others losing 99% of their value. The volatility has led to a lot of uncertainty about the future of cryptocurrencies and whether or not investors should put their money into them.
In this article, we'll break down the current state of the crypto market and look at what it means for investors.

The Crash

As you’d expect, the crash has led to a lot of panic and worry among investors. Many people have lost heart and decided to abandon their investments altogether, while others are still waiting for the right moment to buy back into the market.
But what happens when the crash ends? How can we tell when it will end? And how high will the price go once it does end?
The answers to these questions are not easy to find because there is no one-size-fits-all answer that applies to everyone. There are plenty of different factors involved in predicting what will happen next. But we can still try to make some educated guesses about what might happen after the crash ends.
We are in the midst of a crypto market crash. I believe that this is a good time to buy Bitcoin and other cryptocurrencies. The crypto market has crashed, and it could be a while before we see a recovery.
We have a bear market right now and it is going through an over-correction, which means that it is more likely to go up than down from here. The longer the correction lasts, the more likely it will be followed by a new bull run.
Here are some of my thoughts on what could happen:

Cryptocurrency Prices Will Still Be Highly Volatile

The cryptocurrency market is still relatively new, so it's difficult to predict how prices will react over time. But there are some factors that you can use to help predict how prices will change — including past performance, the number of people using a cryptocurrency and safety concerns.

Cryptocurrency Prices Can Be Affected By Many Things

Media coverage: Media coverage can have a big impact on how people view cryptocurrencies and affect their willingness to invest in them. If a major news outlet publishes an article about how much money was stolen from an exchange, this could cause people to sell their coins because they're worried about security issues. 
Or it could make them want to buy more coins because they believe that more people will want them now that they know about them from reading about their benefits in the news.
It’s important to remember that this is not the end of cryptocurrency or blockchain technology — there are many other currencies and tokens that have not experienced such dramatic falls in value. But it does mean that investors need to be careful when buying into new projects.

Should You Buy The ‘dip’?

The cryptocurrency market is volatile. When the price of bitcoin dropped by more than 75% between January and February in 2018, many people who were not familiar with the crypto world believed that it was the end of the road for crypto.
The truth is that there were no major negative events during this period. The market simply became overvalued and then corrected itself.
If you are new to the cryptocurrency market, you may be wondering if it’s a good idea to “buy the dip.” In other words, should you buy when prices are low? Or is it better to wait until they go up again?
The answer depends on your personal circumstances and goals. If your goal is to make money quickly, then buying when prices fall might be a good strategy for you. However, if your goal is long-term growth and stability, then waiting until prices go up again may be better for you.
When you see a dip in crypto prices, you can be tempted to buy more coins instead of selling them. This may be a good strategy if you believe that crypto prices will recover in the short term.
However, if you believe that crypto prices will continue to fall for some time, then it can be better to hold on to your coins and wait for a better opportunity later on.

Why Is The Crypto Market Crashing?

Interest rates, inflation, and other macroeconomic conditions can all have an impact on how confident people are in putting their money in riskier alternative assets. Savings accounts become more appealing when interest rates rise, and some people may feel more comfortable keeping their money where they can earn predictable returns.
And when prices fall abruptly, as they did in the spring of 2022, it can add to market pressure by pushing some investors to free up funds to satisfy other obligations.
Government moves by authorities throughout the world can also fuel investor skepticism and lead to a crypto meltdown.
As public interest in cryptocurrencies has expanded, policymakers are grappling with the implications of the technology for monetary policy, security, and the environment.
China has been very aggressive. Prices fell on September 24, 2021, for example, after the Chinese government deemed cryptocurrency transactions unlawful and stated that international exchanges are not permitted to conduct business with Chinese citizens.

What Is A Market Bubble?

As the demand for these other cryptocurrencies increased, so did their prices. And this is where we entered into what's known as the "bubble."
In a bubble, assets are valued at prices that are well above their fundamental value due to speculation and hype rather than on any real prospects for future growth. The dot-com bubble of 1999 is probably the most famous example of this kind of phenomenon; at its peak, even companies with no profits or revenue were trading at billions of dollars per share because investors thought they would be valuable someday — if only someone could figure out how to monetise them!
The same thing happened with cryptocurrency prices during 2017: They skyrocketed from $20 billion to over $800 billion before crashing back down again last year



Published by HackerNoon on 2022/06/21