The crypto market has recently experienced an all-time low with Bitcoin having its worst crash as it dumps by $16,000 in just a few hours. The crypto market was experiencing its low moments from the start of the new year with Bitcoin experiencing a low of $42,000.
A lot has changed in the crypto sphere within 24 hours. Bitcoin was unable to breach the $59,000 bar three times a week. These are some bearish moments that the whole market is going through and this article is dedicated to the latest market condition and how this recent Bitcoin might be the opportunity for many to invest for a mega profit in the coming years.
The Rise of Bearish Strikes on the Market
Since Yesterday, the crypto market is experiencing one of the worst crash, and have almost $200 billion in its capitalization. On the other hand, Bitcoin’s price is low at 8.1% since yesterday and is currently resisting $43k.
Many believe this happened due to the o going Omicron threat and whales have already drawn back their investments from the market. However, the holders are still hopeful that this crash might create opportunities for a skyrocket profit in the coming months.
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Altcoins Going Red
Whenever Bitcoin goes down, it drags other altcoins with it too. With the market going too low and experiencing a sudden crash, Altcoins are nothing but red. Ethereum on the other hand went from a high of $4,670 to $3,500.
The massive dump has dragged ETH below $3,900 making it 15% down all the other altcoins are facing a similar situation, with a double-digit price drop it is clear that the market has lost a lot within 24 hours from 2.6 trillion to 2.2 trillion, a four billion worth of market cap lost.
The Cause Behind Bitcoin Drop
The Crypto market is embedded with the element of volatility, as each cryptocurrency has its ups and downs. It is hard for investors to keep up with such a volatile market and not lose any money or assets in between. Many investors see this recent ump as part of a bigger plan for 2022, as there are many possibilities that the market will quickly revive the loss and prices will surge soon.
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As the world is fighting with the lingering threats of COVID-19’s new variant Omicron, it was pretty clear that the market will be experiencing something like this from the very beginning of 2022, on top of this, the U.S government’s new infrastructure bill about crypto is what makes the market shake.
The situation got much worse when the new investors are dropping their holdings of Bitcoin or other Altcoins amid the COVID-19 or the legislation bill are contributing to the Bitcoin price drop. Without knowing that the crypto market has a history of changing prices within minor swings.
What New Investors Should Do?
As crypto market or crypto investments are not the same as traditional investments or traditional markets, volatility is a part of this marketplace and new investors should be ready to experience such highs and lows.
Potential investors who wish to invest in Bitcoin should be aware of the volatility it holds, they must understand that the fluctuations are a part of this investment and should not give away their holdings when times go rough. Their giving up will only make the bitcoin dump goes worse.
Ending Thoughts
The crypto community should be aware of such volatility in the coming months and should not give away their holdings, if people invest now with prices this much low, the market will surely be stable again and might hit an all-time high, and if that won’t happen to be prepared to experience more price drops in the future as it is how this crypto market operates.
One thing to note here is that investors should cover their other financial priorities first including emergency funds, and then look forward to investing in crypto in the coming months.
Do not rush if you see prices going high again. Also, don’t give away your already invested assets if the bitcoin price dump again. The recent ups and downs are due to the threats of COVID-19. And perhaps after this heinous virus, crypto restores its value internationally.
