The global debate of early May 2022 was the fall of Terra (LUNA). Within the span of four days, it had crashed by 99.9, or rather, 96.7% . The fall continued over the next two days. It went up to 99.3%. However, this has not been happening with just one digital currency. It is affecting all cryptocurrencies.
The Crypto Crash
The evidence of a serious crash is there in Bitcoin showing a fall in price, below $30,000. Throughout a single day, its fall went from 0.36% to 44.22%. Similarly, The investors desiring to recalibrate their individual portfolios, went in for Tether withdrawals worth $10 billion. These indicated wide-range liquidations across the digital currency marketplaces.
Cardano (ADA), Solana (SOL), and DOGE, carry the labels of being the eighth, nineth, and tenth best assets in terms of market capitalization. However, they have been displaying rapidly falling prices, within the span of just a week. This was not all! The volatility attacked Polkadot (DOT), Avalanche (AVAX), and Polygon (Matic), too, ranked 11th , 13th, and 17th, by CoinMarket Cap, respectively.
Admittedly, investors cannot fail to be depressed and disheartened, after confronting such happenings. The pricing of cryptos has been falling, and there is no guaranteeing how much more they could lose in value. As the value of the stock goes down, it becomes more desirable to purchase. Therefore, people are engaging in panic buying/selling. In short, there is no underlying economic logic governing the operating of cryptocurrencies. Investors may only take a gamble/risk, in investing in them. You can check the heat of bitcoin mining to know more details in bitcoin trading.
Thoughts of Experienced Experts
The CEO and co-founder of Unocoin is Sathvik Vishwanath. He assures people that his company has witnessed several crypto crashes of this type, and even lived through several bear markets without flinching. Bear markets seemed to take a couple of years or so, to recover, in the past. Vishwanath expects it to be the same this year.
Tezoz’s President, Om Malviya is more hopeful, for he believes the crypto crash is not on such a massive scale, as it was in 2019. At that time, it took the elimination of poorly set-up systems, to restore order.
An additional complication today, is an economic downturn/meltdown. However, as mentioned earlier, various digital currencies, including the extremely popular ones, such as Bitcoin, ETH, etc., seem to be getting back on their feet. Even the global market cap seems to be improving. The last two weeks of the month have looked promising, and give the impression that the months ahead will display a rosier picture than before.
Recovery of the Crypto Markets
Experts feel that the bearish run may continue for some time, before the marketplaces recover slowly. Currently, investors are content to ‘wait and watch’ what happens. They are not too eager to return to playing with the crypto markets, any time soon. The last two weeks of May, seem to have displayed some upward movement in the matter of pricing. However, the gains have not sustained for long. To illustrate, suppose the market capitalization increased to $1.31 trillion, suggesting gains of over 3.66%. However, the figure did not sustain over the next few days, as evinced by CoinMarketCap’s exploration at the time of writing this article. Similarly, a peek at the global volume, revealed it to have risen within the span of 24 hours, to $84 billion (37.22%). The DeFi volume consisted of $59.62 billion. This constitutes 11.46% of the total volume within a span of 24 hours. Stable coins had also progressed upwards, covering 87.74% of the total volume within a span of 24 hours. The amount in cash was $73.70 billion.
True, the figures are not outstanding, but significant! They suggest that the crypto marketplaces may well be on their way to recovery. This suffices to keep the hopes of investors/traders alive!
The last two weeks of May 2022 have also been better than the earlier ones, although it is not necessary to bombard readers’ mindsets with statistics. The focus has been on all the major coins – Ether (ETH), Binance (BNB), XRP, etc. True, (without going into plenty of statistics), the prices have been alternately rising and falling. Regardless, the movements give crypto enthusiasts hope that everything will be fine once again. The scenario is bound to stabilize.