Crypto crash 2022 Full Analysis: Problem, Case, Impact, Recovery and Hope
After big drops in the bitcoin price and other cryptocurrencies, several experts say it could get even worse amid a broader investor sell-off of risky assets. Rising food, gas, and energy prices are putting tremendous pressure on the crypto market as Bitcoin and Ethereum have witnessed double-digit losses in the past few weeks. However latest trends indicating hope for recovery. Bitcoin price seems to be going up or is it too early? Let’s take a look in this article.
The elevated volatility over the weekend drove a popular crypto lending company called Celsius (CEL) to pause customer withdrawals, and that move sparked fears that contagion was ripping through markets.
The market is expected to remain choppy in the coming weeks and months. Countries around the globe continue to report high inflation numbers. So much uncertainties and volatilities around bitcoin. Crypto is considered one of the most volatile instruments for investment purpose.
Experts say that the crypto price plunge indicate a falling risk appetite of investors. They are clearly wary of risky assets. Bitcoin and Ethereum have witnessed double-digit losses in the last few days. we have seen how crypto currency has been under pressure and had free fall from $50,000 to now $20,000.
Bitcoin Price Crash Root Cause
In this section of article, we will look at main reasons behind this free fall. we will talk about if bitcoin will rise again and if crypto market will recover again? Crypto crash didn’t happened in last 2-3 days. It was already there, building up since Russia – Ukraine war started. Many other factors kept on adding pressure and stress to the point Crypto market couldn’t take any more and eventually collapsed. Here is list of major factors:
- Russia Ukraine War
- Increasing Energy Prices
- Global Food Security fear
- US central Bank, Bank of England spiked interest rates to fight inflation
- Recession Panic Started
- High value risky assets under heavy pressure
- Risky assets sell off started
- One of the major crypto lender Celsius paused withdrawals, transfer, and swaps
- On same patterns many other crypto players started to feel the heat
- Biggest trading platform Coinbase lay off 18% of global workforce
- Increasing Energy Prices
All these negativities have caused and contributed in the biggest crash in crypto market. Crypto crash is explained here in one of the best video on internet, explaining crypto bitcoin crash 2022, root case, impact, recovery and prediction Crypto crash 2022 : Bitcoin is Dead
What is Coinbase?
Coinbase Global, Inc. is an American company that operates one of the biggest cryptocurrency exchange platform. Coinbase shredded 1,100 employees, or 18% of its global workforce on June 15th
What is Celsius?
It has been one week since we paused withdrawals, Swap, and transfers. Celsius is an American assets lending company and lot of investigations already started since company paused withdrawals.
How low Bitcoin price will go and what are other impacts of this crash?
Financial analysts and experts says’ this can go down below to $10000. Experts also saying this is indicator that global economy heading towards big recession and if that happens, it may lead to slow growth, loss of employments and lot of other factors.
Will bitcoin price recover and rise again?
As per current outlook, it looks like worst is now over. Since the crash in June, bitcoin seems to be recovering now. However this might be early assessment. As per global trends in stock market or currency exchange rates, these dips and rises are common things. There is strong believe that bitcoin will go up rise again.
Bitcoin is no longer a new thing. It is being adopted by more people. Lots of Technology, efforts and investments have been put into bitcoin. Bitcoin is one of the hot assets we have around. Wall Street corporates, tech and development community have invested lot of efforts, knowledge. Will they let it sink any more? I don’t think so. In fact some experts, analysts says this is short term crash and it will go up again and there is possibility it will hit $100,000 mark.
Lots of smaller companies and investors who missed investment opportunities in last few years as bitcoin was new and less number of people had confidence or its legitimacy. These people are now keeping eagle eye at this crash. Don’t be surprised if you see bigger number of investors taking advantage of this dip. This is great opportunity to invest and get on board crypto train. Basically if this happen Bitcoin or crypto market will have wider acceptance and eventually be even more popular and prices will soar again.
Conclusion
Bitcoin and whole Crypto market going through correction. It is highly recommended for all small or new investors to wait and let market settle before making any entry, unless you have sufficient backups and risk B plans. Please let us know here via comment section or social media channels your thoughts and experience on current Bitcoin price situations, market outlook, and forecast.
Prediction coming so true…