The crypto market is experiencing a major crypto crash of 2022 that has resulted in a wipe-off of almost $200 billion from the crypto sphere in less than 24 hours. This sudden crash has been dumping the price of Bitcoin to at least 10% finalizing it under $40,000. With its statistics, this crash is way more bloody than last year ones. This major dip has resulted in many Altcoins losing their stances in the market as well.
With Ethereum dropping under $3000 per Ether, along with Ethereum other currencies like BNB, Solana, Cardano, and XRP have dropped between 7 to 11 percent. But the question arises here what led the market to bleed this way? What is behind this sudden crash and will it be another hidden opportunity for many in the future or will it go down in vain? In this article, NFT Studio24 will be decoding what led to the sudden dip in the crypto market.
The Saga of the Sudden Dip
It is being in the news that the sudden happened because of a crypto crash in the stock market due to Nasdaq 100 falling into correction territory. This incident pushed the market and the investors facing high-interest rates by the Federal Reserve.
After this many experts and crypto enthusiasts are assuming that this will be the most awaited “Golden Dip” of 2022 that will take crypto to the next heights and people should invest as much as they can. However, besides this enthusiasm, many investors are having a less optimistic approach to the whole scenario. They are predicting that the crash will get more severe in the coming months, and people should avoid investing in the market.
The drop also has a lot to do with the crash on Wall Street, dumping the NASDAQ index at 5% and stepping into correction territory at the close of trading.
On the other hand, we have seen the dire situation of Bitcoin, with losing more than $30,000. It is also experiencing additional pressure after Russia’s central bank proposed the ban on both mining and using crypto within Russian Territory. This had a drastic impact on the market because Russia is one of the top three Bitcoin states.
The Main Culprit of the Sudden Bleeding Crypto Market
Just like we mentioned above, there are multiple reasons why the crypto market is bleeding at its all-time worst. The other major reason that adds up to its worst situation making it worsen is the sudden hawkish turn of the Federal Reserve.
This hawkish turn is focusing on an accelerated pace of tapering and rate hikes. These will only result in policies that will bind crypto in limited hands rather than having a decentralized sphere. People will have a community that will be governed by the regular traditional financing institutions.
Factors like Russia’s ban and multiple energy issues in the rest of the parts of the world. They are acting as a catalyst to halting the stabilization of cryptocurrencies and the market in general. Making it tremble after every passing month.
Many investors are thinking to go for less volatile currencies that affect by sudden crashes and policies. These substitutes to Bitcoin and Ethereum which are the kings of Crypto are causing another blow to these prominent currencies.
A lot is happening and a lot will happen, maybe the power shift is moving towards other digital elements like NFTs and gaming and the metaverse, Defi, and Web3. And maybe it’s time for Bitcoin to have become the boomer coin of the past. Investors should not expect anything this year and that’s for sure. Many coins will perform well compared to Bitcoin and people should seek opportunities somewhere else.
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