Bitcoin and Cryptocurrency – Is it the End of the Worst?
The crypto market has suffered severe crashes in 2022. The price of Bitcoin and every other cryptocurrency have been on a downward trend as a result of severe crashes in the market. This has caused investors to withdraw most of their crypto investments. The collapse of the second largest crypto exchange – FTX, which was followed by several other crypto companies going bankrupt has caused a large number of investors to lose their investments.
As a result of this crisis, the price of Bitcoin has fallen to two years low at $15463. Other digital assets too have lost greater values. Hence, the crypto market is highly tensed up at this point. Investors are fearful that further crises could emanate in the market which could drag the price of Bitcoin lower together with every other cryptocurrency. Are the worst days over yet? This work will guide you in understanding the present market condition today.
What is Bitcoin?
Bitcoin is the most popular crypto known to virtually every crypto trader today. It is the first cryptocurrency ever launched which paved the way for the creation of other cryptocurrencies we have come to know today.
Meaning of Cryptocurrency
Cryptocurrencies are intangible digital assets built on a Blockchain and serving as a decentralized means of payment. They are the new form of money that exists electronically only.
Cryptocurrency faces its worst moments in 2022
The current outlook of the crypto industry today has discouraged many investors from investing in crypto. Prices had continued falling causing many to doubt if they would ever rise again. Bitcoin alone has lost more than 65% of its value in 2022. Anyone who had invested $1000 for instance into Bitcoin last year when the price was over 69K will have only $300 left as his balance.
The situation could have been worse if one invested the same amount into Luna or FTT which both peaked above $200 and $100 respectively in 2021. Supposing one invested $1000 into any of these two tokens last year, the value of his portfolio would be less than $1 in 2022. These two tokens crashed severally this year causing long-term investors to lose almost all their investments. Many more crypto projects have suffered the same fate at varying degrees.
The overall market condition is so despicable at this point that investors are not sure again which direction to follow. Are the worst days over for the crypto market? Can investors keep on to their losses in the hope that the market will recover soon? We have discussed these two important questions in the next paragraph below.
Are the worst days over for Bitcoin and every other cryptocurrency today?
The most important question which every crypto trader is seeking to find out the answer now is whether the worst days are over for Bitcoin and every other cryptocurrency. Is the dip over? Can one confidently invest in cryptocurrency at this point?
The crypto market is faced with the challenge of finding new buyers at this point, which is very necessary to push up the prices of various cryptocurrencies again. However, finding new buyers at this point has not been an easy one; as Bitcoin has not been able to reclaim its strong support at $17350 to attract more investors. As long as the price of Bitcoin stays below this level, then it remains vulnerable to further falls.
The upcoming Fed session on December 14, 2022, is another important factor that could further trigger more selloffs for Bitcoin and every other cryptocurrency especially if the monetary policy committee decides to hike the interest rates aggressively again.