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Another week has passed since the massive crypto meltdown
Cryptocurrency enthusiasts are having a difficult time. Following a very strong second half of 2021, we now appear to be in an eternal downward trend as the crypto market crisis continues. Whether it's Bitcoin, Ethereum, or another type of cryptocurrency, currencies are sliding one after the other, with only brief respites occuring on a case-by-case basis. Is this the new normal for the crypto market, or will it continue to rise and fall like it always does?
Cryptocurrencies in general are notoriously volatile. Seasoned cryptocurrency veterans have witnessed both mountain-high highs and shattering lows. The crypto market fluctuates, much like the stock market, but the crashes that occur semi-regularly on the crypto market are a perfect representation of how unpredictable it truly is.
The crash is not confined to a single cryptocurrency. While Bitcoin is the poster child for cryptocurrency, other currencies were hammered just as hard, if not more. That is not to argue that Bitcoin (BTC) has not suffered a severe loss; it has. According to CoinGecko, BTC reached an all-time high of $67,617 at the beginning of November 2021. The price has progressively declined since then, but it genuinely fell in January, reaching slightly about $35,000 on January 23.
According to The Economic Times, the most recent crypto meltdown wiped out more than $1 trillion in market value. That's right: $1,000,000,000,000, a whole twelve zeroes, in US money has just vanished in a few of months. Which currencies have suffered the most losses?
As previously stated, Bitcoin has suffered a significant loss, and we may not have seen the last of it. BTC has dropped more than 45 percent of its value since its high in November. While Bitcoin is in trouble, other currencies are not faring any better.
Ethereum (ETH), the second most popular coin, is also suffering significant losses. In the recent past, Ethereum's value (in terms of USD) has dropped hundreds of dollars on an hourly basis, only to reclaim some ground later — and then plunge again. ETH, like Bitcoin, reached its pinnacle in November 2021, achieving a value of $4,815 per coin (via CoinGecko.) Although the currency never quite reached that level again, it remained around the $4,500 range through the end of November and part of December 2021 - but those days appear to be long gone now. ETH has declined from $3,356 to $2,381 in the recent week (January 17-January 24, 2022).
We recently reported on Dogecoin's massive success, which is now officially acknowledged as a currency on the Tesla retail store, however the euphoria was fleeting. Dogecoin is presently worth the least it has since its surprising spike in April 2021. In other words, the crypto crisis is hitting all currencies, whether they are giant behemoths (BTC and ETH) or lesser coins.
Before we go into what transpired in the cryptocurrency market over the last several weeks and months, it's crucial to understand that this is just what the crypto market does. It rises and falls in waves, and only a larger picture of more than a year reveals which market cycle we are currently in. That's true, the crypto market (while it isn't solely a crypto thing) recognises two market cycles: bull markets and bear markets.
A bull market occurs when investments are generally on the increase. There may be some bumps in the road, but we're seeing an overall upward tendency – that's a bull market. A bear market, on the other hand, describes a period in which securities decrease over an extended length of time.
Many financial analysts think that we have been in the midst of a bull market for quite some time. The bull market dominated the majority of 2021. With the recent slump, some analysts believe the bull market is ended – at least until the next cycle. "I'm afraid the bull market has come to a sudden end," market expert Opeoluwa Dapo-Thomas told NairaMetrics. Key support levels have been breached, wiping out a trillion dollars from the total value of the cryptocurrency market."
The epidemic had an impact on markets all across the world.
Whether or whether the bull market has ended for good, it's difficult to dispute that things are difficult right now. There could be a variety of causes for the 2022 crypto market catastrophe. According to Financial Express, the Omicron version of the new coronavirus is causing anxiety in all markets. Two years into the pandemic, the market's impact remains as strong as ever, playing a role in the most recent crypto meltdown.
The cryptocurrency market is also reacting to the status of the world market, which has been experiencing a negative trend: once again, this is most likely because to the ongoing epidemic. Many governments are currently taking steps to lessen the inflation of the last two years, and the market suffers as they reverse previously enacted emergency measures.
According to USA Today, the Federal Reserve began producing dollars from scratch at a considerably quicker rate in 2020 to save the economy at the start of the epidemic. Governments all throughout the world have done the same thing in numerous cases. There was no way this wasn't going to catch up to the market eventually.
Will cryptocurrency be able to rebound from this downturn?
Many crypto sceptics are ecstatic as the markets hit new lows on a daily basis, but is this trend likely to continue? It's difficult to predict with precision, but historical examples of bull and down cycles suggest that the crypto market will eventually recover. So far, it has always done so, with significant gains each time.
Simply looking at Bitcoin prices on CoinGecko provides a very basic picture of how the cryptocurrency market fluctuates. A year ago, in February 2021, Bitcoin was considerably cheaper than it is now, fluctuating about $32,000. We've seen it grow to $60,000 and above in March and April 2022, only to fall back to $30,000 in June. We all know what happened next: the massive November 2021 increase.
Whether the cryptocurrency market recovers swiftly or slowly, the odds are that things will return to normal sooner or later. Time will tell whether Bitcoin and other cryptocurrencies can repeat their 2021 performance.
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By Crypto PiratesCryptocurrency enthusiasts are having a difficult time. Following a very strong second half of 2021, we now appear to be in an eternal downward trend as the crypto market crisis continues. Whether it's Bitcoin, Ethereum, or another type of cryptocurrency, currencies are sliding one after the other, with only brief respites occuring on a case-by-case basis. Is this the new normal for the crypto market, or will it continue to rise and fall like it always does?
Cryptocurrencies in general are notoriously volatile. Seasoned cryptocurrency veterans have witnessed both mountain-high highs and shattering lows. The crypto market fluctuates, much like the stock market, but the crashes that occur semi-regularly on the crypto market are a perfect representation of how unpredictable it truly is.
The crash is not confined to a single cryptocurrency. While Bitcoin is the poster child for cryptocurrency, other currencies were hammered just as hard, if not more. That is not to argue that Bitcoin (BTC) has not suffered a severe loss; it has. According to CoinGecko, BTC reached an all-time high of $67,617 at the beginning of November 2021. The price has progressively declined since then, but it genuinely fell in January, reaching slightly about $35,000 on January 23.
According to The Economic Times, the most recent crypto meltdown wiped out more than $1 trillion in market value. That's right: $1,000,000,000,000, a whole twelve zeroes, in US money has just vanished in a few of months. Which currencies have suffered the most losses?
As previously stated, Bitcoin has suffered a significant loss, and we may not have seen the last of it. BTC has dropped more than 45 percent of its value since its high in November. While Bitcoin is in trouble, other currencies are not faring any better.
Ethereum (ETH), the second most popular coin, is also suffering significant losses. In the recent past, Ethereum's value (in terms of USD) has dropped hundreds of dollars on an hourly basis, only to reclaim some ground later — and then plunge again. ETH, like Bitcoin, reached its pinnacle in November 2021, achieving a value of $4,815 per coin (via CoinGecko.) Although the currency never quite reached that level again, it remained around the $4,500 range through the end of November and part of December 2021 - but those days appear to be long gone now. ETH has declined from $3,356 to $2,381 in the recent week (January 17-January 24, 2022).
We recently reported on Dogecoin's massive success, which is now officially acknowledged as a currency on the Tesla retail store, however the euphoria was fleeting. Dogecoin is presently worth the least it has since its surprising spike in April 2021. In other words, the crypto crisis is hitting all currencies, whether they are giant behemoths (BTC and ETH) or lesser coins.
Before we go into what transpired in the cryptocurrency market over the last several weeks and months, it's crucial to understand that this is just what the crypto market does. It rises and falls in waves, and only a larger picture of more than a year reveals which market cycle we are currently in. That's true, the crypto market (while it isn't solely a crypto thing) recognises two market cycles: bull markets and bear markets.
A bull market occurs when investments are generally on the increase. There may be some bumps in the road, but we're seeing an overall upward tendency – that's a bull market. A bear market, on the other hand, describes a period in which securities decrease over an extended length of time.
Many financial analysts think that we have been in the midst of a bull market for quite some time. The bull market dominated the majority of 2021. With the recent slump, some analysts believe the bull market is ended – at least until the next cycle. "I'm afraid the bull market has come to a sudden end," market expert Opeoluwa Dapo-Thomas told NairaMetrics. Key support levels have been breached, wiping out a trillion dollars from the total value of the cryptocurrency market."
The epidemic had an impact on markets all across the world.
Whether or whether the bull market has ended for good, it's difficult to dispute that things are difficult right now. There could be a variety of causes for the 2022 crypto market catastrophe. According to Financial Express, the Omicron version of the new coronavirus is causing anxiety in all markets. Two years into the pandemic, the market's impact remains as strong as ever, playing a role in the most recent crypto meltdown.
The cryptocurrency market is also reacting to the status of the world market, which has been experiencing a negative trend: once again, this is most likely because to the ongoing epidemic. Many governments are currently taking steps to lessen the inflation of the last two years, and the market suffers as they reverse previously enacted emergency measures.
According to USA Today, the Federal Reserve began producing dollars from scratch at a considerably quicker rate in 2020 to save the economy at the start of the epidemic. Governments all throughout the world have done the same thing in numerous cases. There was no way this wasn't going to catch up to the market eventually.
Will cryptocurrency be able to rebound from this downturn?
Many crypto sceptics are ecstatic as the markets hit new lows on a daily basis, but is this trend likely to continue? It's difficult to predict with precision, but historical examples of bull and down cycles suggest that the crypto market will eventually recover. So far, it has always done so, with significant gains each time.
Simply looking at Bitcoin prices on CoinGecko provides a very basic picture of how the cryptocurrency market fluctuates. A year ago, in February 2021, Bitcoin was considerably cheaper than it is now, fluctuating about $32,000. We've seen it grow to $60,000 and above in March and April 2022, only to fall back to $30,000 in June. We all know what happened next: the massive November 2021 increase.
Whether the cryptocurrency market recovers swiftly or slowly, the odds are that things will return to normal sooner or later. Time will tell whether Bitcoin and other cryptocurrencies can repeat their 2021 performance.
Support us!