Facing the brutal loss in the bear market, the crypto market has been surfacing sheer fear and losses in 2022. There have been people making profits in these times as well, but the overall market sentiment toward crypto and investments is in a downward curve. During Covid, the bullish run was seen because of keen interest by the people in the crypto market. During 2017, ICOs (Initial Coin Offerings) were popular among the crypto community, to make the most from what the projects were promising to give to their investors. From early bird opportunities to airdrops, there was a lot that happened in the crypto sphere and its major forefronts. Now, the situation of the market pops a question about, why isn’t bitcoin booming? To answer this, we must see through a micro lens.
Expecting the Next Boom!
So why isn’t bitcoin booming? Trading and investments are always inherent in losses and profits. Since the process of crypto investments and churning profits out of spot and futures is no different from the conventional trading methods, the matter of severe perseverance is needed to stay afloat in the tumultuous market. In crypto, we call this as being “Diamond Hands.” To stay in this position and enjoy the status of Diamond Hands, there should be some research conducted as to why the bitcoin fell in price and when there are absolute chances of recovery. From $2 trillion in valuation then slumping to $900 billion, the market lost a considerable number of investors. While many shady tokens were outweighed and completely wiped off from the system, there were more chances to see lucidity in the top altcoins of the market to help make pragmatic decisions for what would be viable eventually. To make the points stay on top, the current crypto market situation is more like the dot com bubble of 1991, where several investors claimed that this is artificial hype and would burst in the coming times. But on the contrary, here we are reaping the benefits of the revolution that the internet brought. The first decade of this century witnessed the recession in the real estate market while the emergence of Bitcoin highlighting the problems of a flawed and loopholed banking system brought a groundbreaking revolution, that highlighted the cyclic devastation of the banking processes. Now that Bitcoin, Ethereum and other altcoins flourished, in the second decade, it is important to note that, this is just a starting phase for the blockchain projects and tokens to be coming up. While we are unable to determine the validity of the upcoming crypto tokens and projects, combinedly we cannot ignore the amazing part of this technology.
The main reason behind this sudden fall in prices was the increased inflation in the US market, resulting in hiked interest rates and heated political tensions between the power-hungry countries. Since Russia-Ukraine started there are strong blows sent toward the major economies of the world. There is a certain underlying fear seen among people as to whether to invest or not. Before the war, all that seems rosy has turned pale and we can see more FUD and paper hands, keeping the market down. Though some of the market traders have an aptitude for the current market situation and how to place timely trades, they are still making hay in the futures and perpetual.
Following a Downward Trend
On June 13, 2022, the official crypto winter started for the investors as they were losing their calm on what they invested turning to the contrary for them. From reaching an all-time high of $64000 and above, the blue-chip coin slumped to a shudder downfall of $19,000 or less. There are many investors, gamers, NFT (Non-Fungible Tokens) holders, and typical trading maestros facing the crypto winter season. Since there are no upper or lower caps in crypto like traditional trading there is ultimate FUD seen among the crypto community. It is though apprehensible that crypto as well as any market is prone to highs and lows with no promise of ultimate recovery, there are still some micro and macroeconomic indicators seen to make subtle changes in the crypto market.
With the launch of certain NFTs and meta projects that are yet to be launched, there is a ray of hope seen for the investors and new entrants in the crypto trading arenas. The world of meta and virtual reality gaming would not only entertain you but would help you gain full ownership in the crypto sphere. And this is possible and imminent soon, as Web 3.0 is under development and many new projects will be displayed with full and partial features associated with Web 3.0. The current silence of the fall in the crypto sphere is also an indication of what the amazing web 3.0 and native payments have in store with them for the next bull run.
Is the Crypto Market Going to Recover?
Still, many of the learners and novices of the crypto world are making their plunge into the rising crypto sphere, it is yet difficult to ascertain when or how the market would be recovering or making a certain correction. With the recent merger of Ethereum from PoW (Proof of work) to PoS (Proof of Stake), there are hopes for the crypto market to provide faster, optimized, and agile technological advancements. This advancement and upholstering to the current impediments of the transaction speeds can bring many changes for the current and potential investors, culminating in a brighter future for investors to accumulate returns. Experts and investment gurus hold a mix of feelings and sentiments foreshadowing their opinions about the current scenario for the crypto community and whether the investment would turn green or red. This is a debatable topic among crypto investors from both polarities. Some hopeful investors are seeing its future bright as there is a staunch belief prevalent among investors about the future of crypto seems prominent and shining. They support their opinion with historical trends and how the market saw bullish and bearish situations in the past. Though there occurred certain events such as falling prices of Terra (LUNA) collapsed and created havoc among traders. It fell drastically from its peak point to a deep trough. It not only panicked its current hodlers but created a ripple effect on the overall market behavioral canvas. Discussing all these scenarios does give us an insight into when the world would be ending wars, interstate wars, and the fight for resources has though changed the overall optimistic viewpoint on trading. While some foresightedness is seen among traders that have set their positions in long and shorts in futures and options. Many people took benefit out of the bull run whereas could not bear the whims of the bearish trendline. At this stage, a more nuanced approach is required to make money by setting up shorts and longs as per short-term market analysis while waiting for the next bull run!
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