Crypto market: Is the crash over?
|This last week has seen a massive crash in cryptocurrency values. While Bitcoin seems to stand still strong regardless of the drop, other cryptos have suffered dearly, even losing their ranking among the ten most popular cryptocurrencies. Specially, we are thinking of Terra (LUNA), which has seen a drop of 60% in 24 hours. Is the crash over? Has the crypto market started to recover?
After a significant crash in the crypto market as a whole, some cryptocurrencies have started to recover. Bitcoin among them, however not necessarily the one showing stronger recovery. Others, like BNB, Ethereum and XRP have shown faster and better rates of recovery.
There is no doubt that a massive crash has left crypto investors with extreme fear and facing losses in the billions. The fall of Terra, which dropped from the eighth spot among the largest crypto tokens to somewhere below the 20th, has meant millions in losses to investors and has contributed to the general fear in the crypto community.
But there is always someone who can smell a deal, and a low market is an opportunity for high-risk investors looking for a profit when things go back to normal. Experts still suggest avoiding buying at the moment, and the volatile market that crypto definitely supports that suggestion. However, there may also be the time to make a huge deal, not without an equivalent risk.
Is the crypto market going to recover?
Historically, it is known that the market goes up. It may be down for a while, and then up and then down. It’s a game of patience. However, when it comes to cryptocurrencies, investors are mostly swimming in uncharted waters.
The extreme fear sentiment among crypto investors right now is justified. Yes, the market will probably recover, with time, but it is unknown if it will reach the levels it had before or if the crypto, like LUNA, will survive the ride or regain the confidence of investors that seems to have dropped it now.
While opportunities arise in times of low markets, it all depends on what type of investor are you and how you distribute your assets. Yes, crypto is basically on sale right now.
A trend among all cryptocurrencies
Yes, we are talking about Bitcoin and currencies like Luna (that has the vital role of keeping stablecoin TerraUSD’s peg to the dollar) because those are among the most popular and those with higher prices, at least until the recent crash. However, altcoins (which are smaller crypto), like Solana and Cardano, also experienced a drop of around 12%, which is not something to overlook.
Even the so-called memecoins, which were initially intended as internet jokes rather than cryptocurrencies or serious blockchain projects, experienced the effects of the crash. An example is Shiba Inu, which experienced a loss of 16% in 24 hours.
Predictions for the second half of 2022
It is hard to predict where things are going in the long term. The crypto market is new and constantly evolving, and therefore is not surprising or unexpected, at least to the experienced investor, to see deep drops after highs. Additionally, there is little regulation in the crypto market, and few studies, all of which results in a bit of an unknown horizon when it comes to long-term predictions.
Experts are divided among those that have a more optimistic forecast, hoping for a normal cycle of bear and bull market, and those who expect a more pessimistic outcome where the market may not recover just yet. Many factors will impact the crypto market in 2022, some may have long-term not only on the price of the currency but also on the whole community, especially if we see governments starting to regulate the industry.
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