Crypto prices continue to slide down. Although it has seen some progress in the last couple of days, if we compare it to the past year, it is done by 33%.
At the time of writing, the price of one Bitcoin was $31,558. And has been down by 17% over the last month. Bitcoin has been at its lowest price since the start of 2022.
Other cryptocurrencies might have pulled back sharply in value; if Bitcoin is not performing, it is significantly affecting the Crypto market.
Here’s what experts have to say about the Crypto going down in 2022.
Mainstream Adoption Lagging
The Cryptocurrency was launched in the market for the sole purpose of rivaling the fiat currencies. However, the lack of physical existence has made it impossible for the currencies to win the trust of people.
Although there have been numerous events last year which made people think Cryptocurrency will soon become a norm, central organizations were not in favor of it.
This year has been quiet so far, with few milestones to chart the growth of the Cryptocurrency market. In addition, many investors are waiting to see how Cryptocurrency will play an important role in the emerging Metaverse technology.
The main reason behind the Crypto prices going down is their volatility. One day you will find that Cryptocurrencies are performing well. The next day you will find investors are bailing out of the market.
In the last couple of years, it has been seen that Crypto has been trending alongside the stocks. Edward Moya – A senior analyst at Onada, said that Bitcoin is mirroring Nasdaq. He said this because the tech-centric index was down by 21%, while Bitcoin was down by 22%.
Right now, the Crypto market is really stuck in the middle. Investors are waiting for the market to calm down. Once the market is calmed down, you will find more investors showing their interest in investing.
Investors Seeking Safer Ground
There is no doubt that Cryptocurrency is a risky domain. In fact, we believe that it is not for someone who has just entered the investment market.
The current price fluctuation in the Crypto market is happening because people are unwilling to invest in dangerous unexplored land. Instead, they are seeking safer grounds.
When the stock market stumbles, investors try to find more stable grounds, such as U.S treasury bonds. After seeing the Crypto crumbling market, many Crypto investors are shifting their portfolios back to dollars.
Bitcoin peaked at $69,000 last November but fell to $30,000 at the start of 2022. This made investors panic and choose safer grounds to invest in.
Will Crypto Recover?
Bitcoin rose more than 8% over the last seven days, breaking above $31,000 this weekend. It is trading close to $32,000 on Wednesday. This has been a significant rise in the last six months after hitting a low earlier this month.
Data from the Crypto research firm CryptoShare shows that there has been an inflow of Crypto funds of $87 million. This is a positive sign for the market, considering the performance of Bitcoin in the last couple of years.
This shows that the Crypto market will soon regain its former glory. Yes, it might take time. But seeing how the funds are still inflowing in millions. There is no doubt about that.
If you are interested in Crypto investment and want to become a part of it, you need to have access to all the latest news related to Crypto. Follow the Immediate Edge site to keep yourself updated about what is happening in the Crypto universe.
What Should Bitcoin Investors Do?
The recent market changes should not lead investors to panic. Yes, you might take a step back, but before doing that, you must understand the reason behind the current Crypto market tectonic shifts.
Aside from the rumors you hear and Government policies, you must know the Crypto market is known for its volatility, and this much change is certain.
So, instead of panicking, track the market, monitor the scale, and find opportunities to make money.
If you are confused about something we didn’t cover in this article, feel free to drop your queries in the comment section. We will ensure every question is answered.