Crypto

Crypto Volatility: Is This The New End Of Crypto?

Following the collapse of the Terra/Luna stablecoin and given ongoing fears of more tragedy to come, terrified investors are fleeing, sending the cryptocurrency market into free fall. However, some people continue to believe and have faith in brighter days.

Even if past price action cannot predict future results, it is certainly a marker because patterns tend to repeat themselves. Since the beginning of financial markets, the best traders have employed technical analysis and there is now enough price data for Bitcoin to do so.

After the significant turmoil caused by Luna Terra and Bitcoin hitting $25K, speculative claims that Bitcoin would eventually hit zero, that altcoins were a scam, and that the market would be completely devoid of liquidity circulated online.

The future of cryptocurrencies

As investors dumped riskier assets amid macroeconomic uncertainty, the price of bitcoin fell below $21,000 on Thursday. Rising inflation, a faltering stock market, rising interest rates, and concerns about a recession are just a few of the issues causing significant economic discomfort.

In recent months, the cryptocurrency market has closely followed the stock market, further entangling it with variables affecting the global economy.

Prabhdeep Singh, a passionate investor Since the early days of Bitcoin, he has watched these market ripples. He states that fear periodically captures the market. Fundamentally minded institutional investors would not change their positions. The market moves as a result of fear experienced by regular investors.

Since peaking at $69,000 USD in November last year, Bitcoin has fallen by more than 70%. There have also been numerous job cuts at several well-known crypto firms, including Coinbase and Crypto.com, due to volatility and rate hikes restricting the flow of cheap funds into unsafe investments.

Crypto experts have always pointed out that the industry cannot go away quickly. Also, investors have been advised to start researching about the projects or coins they want to invest in before investing.

Clearly, 2022 is not the year crypto investors were hoping for. Furthermore, there is a good chance that the price of bitcoin will not reach $100,000 in 2022. However, the cryptocurrency markets are quite unpredictable and highly volatile.

The charts are similar to lifelines in that they never point in one direction. There will always be ups and downs; those who are part of the big picture will stay, while the rest will leave feeling lost.

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