Last year was a great moment in the crypto market, Bitcoin and other crypto coins climbed their all-time high. But since the beginning of this year, the crypto market has been trending downward. Crypto investors are speculating whether the cryptocurrency market will recover and bounce back from the recent crash. Many experts say we are in a bear market. But how long will this last, why is crypto crashing, and will it ever recover?
Cryptocurrencies are known to be very volatile, and many investors are scared some coins may never recover. Top coins like Bitcoin and Ethereum have high possibilities of always getting back up. However, coins with little market caps or values may never get back up, and some other crypto coins may never exist again.
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How Bad Is Crypto Crashing?
Last year, between Oct. 12, 2021, and Oct. 12, 2022, Bitcoin fell nearly 67%. Its current value of $16,512.21 as of Nov. 17, 2022, is about 75% less than its November 2021 high of $64,912.20 per coin. Also, Ethereum is down about 75% from its last all-time high. Likewise, other altcoins tend to follow the same downward trend.
The recent FTX fall has negatively impacted affected the crypto market. FTX was considered one of the safest crypto exchanges, so the news has shaken confidence in the industry. People are now advised to move their coins out of exchanges to their own personal wallets.
Will Crypto Survive the Crash?
Like other financial markets, this is not the first time the Crypto market is experiencing this. The crypto market is volatile and has experienced significant crashes since 2011. Despite the impact, some investors and analysts believe this is just a minor setback. The global crypto market is correcting its own trajectory and is expected to return to its upward trend soon. However, nobody knows how long the bear market will last.
Conclusion – Why is Crypto crashing and will it recover?
Many blockchain technologies, including the metaverse and NFTs, make cryptocurrency seem more promising than ever. However, It is advisable to only invest in cryptocurrencies with a good reputation, large market cap, and value. These coins are always likely to bounce back up. If you like to take risks, buying now when the prices are down will yield better chances of profiting from your investment in the future. Nobody is hundred percent certain of future trends. So only invest money you can afford to lose, and save your cryptocurrencies only with reliable crypto exchanges or personal wallets.