Cryptocurrencies

Is the crypto market going down?

The crypto market has more ups and downs than a roller coaster. But now it seems like things are very bad for crypto investors. Is it really that bad? Read this post to understand what is happening.

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We hear about the crypto market’s ups and downs, but is it sinking right now? Let’s find out!

Stressed business man crypto trader broker investor analyzing stock exchange market crypto trading decreasing chart data fall down loss, desperate about losing money of crisis, recession, inflation.
Is the crypto market going down? Source: Adobe Stock.

If you read any news about cryptocurrency, you’ve probably seen that the crypto market is going down. But do you know what this means? Is it a normal fluctuation, or is it going drastically down?

The crypto market is naturally unstable and fluctuates a lot. But this time, it has definitely gone down at a critical level, losing over 2 trillion dollars. 

As economists and investors speculate whether the market has already bottomed, let’s see what you can do about it.

bitcoin token

Bitcoin growth from macroeconomic factors

Despite the bullish momentum that has been pushing the prices of bitcoin higher, there are some macroeconomic factors that could soon impact its growth.

Why is the crypto market so low?

The computer screen shows a bitcoin graph. Trading online. Concept of trading online while cryptocurrency exchange rate going down with red background. Virtual currency stock market.
The crypto market has reached critical levels. Source: Adobe Stock.

Although it counts with thousands of cryptocurrencies nowadays, the crypto market is still strongly linked to Bitcoin. Therefore, the value of bitcoin has a huge impact on the entire market.

And the problem is that the price of bitcoin has halved. and Considering the astronomical value Bitcoin reached in its heyday, it was a big drop.

The coin that once fetched $69,000 for 1 single Bitcoin is now worth $20,000. This scared many investors who saw their investment portfolios halve over the course of a few months.

Another coin that has seen a big drop is Ethereum, the second largest of the cryptocurrencies. After peaking at $4,811, the coin is now worth something around $1,000.

Many currencies reached zero, including currencies that showed growth potential.

There are many reasons for this fall. After all, the economy as a whole is going through difficult times. Wars, inflation, the rise of interest rates, changes in the crypto market regulations, and lockdowns all these influences the investment market. 

Therefore, we can consider this fall as part of the natural balance of investment markets, which respond to global events. It would be unfair to point out this fall as a failure of the cryptocurrency market as several sectors of the economy around the world are experiencing hardships.

Will crypto prices keep falling?

Unfortunately, forecasts point out that prices will continue to fall and get worse.

Many investors are afraid of the crypto market and have sold their assets. This causes the market to continue falling even further.

But experienced Bitcoin investors are used to huge fluctuations in the currency’s value. Now it becomes a game of who has the coldest blood to hold on to their assets until the crisis passes.

Because this crisis will pass by, just like all the others. The question that makes investors’ knees tremble is how long they will be able to hold their breath.

Remember that Bitcoin was only worth a few dollars when it was created in 2011. Investors with a long-term view and with the structure to withstand market crises do not despair in times of the low market.

A red flag was raised when the situation improved in the stock market on Walls Street, and the same did not happen in the crypto market. This means that investors are wary and may not return to investing in cryptocurrencies anytime soon.

Some economists believe it will be a long “winter” for cryptocurrencies.

Should you buy crypto now?

Bitcoin breaking record crash of 2021 disaster
Is it a good moment to invest in cryptocurrencies? Source: Adobe Stock.

This question is highly individual, and there is no correct answer. Each investor must assess their conditions and their needs. The actions to be taken in the next few months must be very well planned, and this is not the time for irrational or hasty attitudes.

It is common to see some investors saying that this is the right time to buy to take advantage of low prices. But remember that there is always a risk and that past gains do not mean future gains.

But some more technical investors are taking a deeper look at this bear market. According to these investors, the market has gone through a period of saturation, with many small and unreputable coins inflating the market. Most of these altcoins crashed and did not survive the market crash.

Larger, well-established coins like Bitcoin and Ethereum should survive this period and rise again as soon as the market is ripe for it. Many still bet on these currencies as a hedge against inflation, and they remain valuable in the investment market.

Even with this precipitous drop, many experts still predict that Bitcoin will be worth hundreds of thousands of dollars in the next few decades, with expectations ranging from 200 thousand to one million dollars per Bitcoin.

However, it’s all extremely unpredictable. You need to have a good emergency reserve and emotional stability to hold coins during crypto winter.

Is it safe to keep investing in the crypto market?

Many investments have risks, and few are considered completely safe. And the ones that are totally safe usually have low or very slow gains.

Investing in cryptocurrencies carries a greater risk due to the instability and natural fluctuation of the market. By itself, this already requires more skill from the investor in reading the charts to make decisions.

Despite believing that Bitcoin and Ethereum will continue to be valuable assets and that they will recover their value in the market, many experts believe that this is not the reason to invest in the crypto market.

This is due to a general analysis of the US economy, considering inflation, interest rates, and the Wall Street stock market.

But those who still want to invest in Bitcoin and Ethereum must be prepared to withstand the downturn and have a high-risk tolerance. Savvy economists and investors recommend that cryptocurrencies should not occupy more than 9% of their portfolios at this time.

Low-risk investment alternatives: learn the best option to keep your money safe

If you’re not sure if the crypto market is right for you right now, it’s ok. You don’t have to take big risks and deal with this highly unstable kind of investment.

Instead, you can choose a safer investment with low risk to keep your money safe during the crisis. Read the following content to learn about the safest investments.

piggy banks with the best low risk investments

Safe investments with the best low-risk options

You don't need to take high risks to start investing, Pick one of these low-risk investments and you'll keep your money safe.

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