Bitcoin has become the number one choice of investors, and almost all businesses are anchoring their strong roots in the crypto market because of the constant elevation in its price.
However, over the past few months, crypto has been demented in terms of growth. The dramatic rebound of the BTC price has left investors in awe as the ever-growing graph line of crypto has flatlined.
The collapse of crypto has left investors questioning whether the crypto market will ever rise again and the future of cryptocurrency.
How Bad is The Crypto Crash?
It was just a year ago when bitcoins were rising, rounding off as the best investment with a ground-breaking profit of $66,938. However, constant downfall has been signed off as the fate of cryptocurrency due to post-corona economic fall and the ruination due to war in Ukraine.
The global head of research at Forex.com, Matt Weller, has announced that trading volumes have more than halved, hinting towards the crash in other assets such as cash, gold, and bonds.
Besides cryptocurrency, almost all of the crypto market, such as FTX crypto cash, has also been flustered, a known fastest-growing crypto network in the world.
The Science Behind Sudden Fall in Crypto Market
The abrupt liquidity in FTX became the reason for Binance calling off the deal last minute, leaving the cryptocurrency in great shock that accounted for the fall of almost $15,000. This sudden frenzy has left crypto with an overall 70% fall in value.
What Does the Drop in Crypto Price Mean to Investors?
Undoubtedly, the drop in cryptocurrency has awakened some investors to take a golden chance to invest more when the price is swinging.
But according to investment expert Humphrey Yangs, big dips in the crypto are nothing to be worried about, but he states that during a volatile period, he avoids checking his own investment. According to expert Bill Nobel, the drop and rise is part of any investment, and there is nothing to worry about if you keep it under 5% of the portfolio.
Will the Crypto Market Rise Again?
Bitcoin entered 2022 on a rising note leaving a positive impact of a good comeback on investors. After opening at the $30,000 range in 2021, bitcoin increased throughout the year and hit the ground-breaking record of its all-time high value of 68,000 in November.
Despite taking the sudden downfall in 2022, finance experts and retail investors are still hoping high for the crypto winter to end soon, even with its highly volatile nature. Investors are naming the rise of crypto again as the matter of when it will take place as they are confident that it will shoot the market again with a price rise expected to be around $100,000 in the coming days or so.
Financial experts worldwide recommend keeping the crypto investment in the safe zone, where it doesn’t stand in your other financial outlooks. Keep it low and to the limit where you can manage the loss without directly impacting other finances.