Why Crypto Is Crashing & How To Know If It Will Recover //
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Why Crypto Is Crashing & How To Know If It Will Recover

Alsyd Eabidin

 Why has cryptocurrency crashed so hard? Why is my bitcoin wallet worth less than it used to be?How can I know if cryptocurrency is on it's way to recovery or if it's going to continue dropping?Is there a cycle to cryptocurrency crashes, and how can you tell where we are in this cycle?Are cryptos actually going to recover or is this the end?

Why Crypto Is Crashing & How To Know If It Will Recover

Why is crypto crashing?

  1. A possible catalyst for the crash was the news that Tesla will no longer accept bitcoin as payment.
  2. Many in the crypto industry see this as a blip on the radar, and even call it out as a necessary and healthy market correction.
  3. 25% of all crypto exchange users plan to buy more BTC.
  4. Institutional demand is growing.
  5. Goldman Sachs have changed their view on the digital currency and don't believe it's in a bubble anymore.
  6. The bitcoin price is at its lowest point in 2021 but it is still up 20% year-to-date.
  7. The total valuation of the global cryptocurrency market is down 41% compared to its high of $2.4 trillion on April 16 but it is still up 27% year-to-date.
  8. Some believe that Ethereum could overtake Bitcoin as a store of value in the coming years, but not too soon, since Bitcoin has a larger network effect and prestige behind it, which would be hard to match immediately.
  9. The crypto market may be cleaning itself out as scammers take their profits and leave while legitimate investors remain committed to long term gains.

read more: Cryptocurrency News and Altcoin Price Analysis

What will happen to cryptocurrency next?

  1. Bitcoin has entered what traders call a "death cross", which is a main indicator that the market could be in for a prolonged period of slow growth.
  2. Analysts are still wondering whether this is just another normal correction or something bigger, but they do agree that the current crash is not like anything the industry has ever seen.
  3. Even the world's largest exchange Binance had to lay off employees - due to necessity.
  4. It has never been this bad before and we haven't seen this much red in a long time.
  5. The good news is that analysts still see room for growth, but it will take time.
  6. There are also some experts who are predicting that another recovery will come soon. Some say by August, others are more cautious and say September or late 2020.

It's going to take a while for cryptocurrency to recover from recent crashes.

read more: Binance Isolated Margin Rules & Cross Margin Trading Explained

Will it ever recover?

  1. The crypto market has been crashing for the past few months. 
  2. It's not just Bitcoin, many of the other cryptos have also been hit hard. 
  3. Lots of people are wondering what happened and when we'll see a recovery. 
  4. The main takeway is that the crypto market will recover, it just needs more time. 
  5. When Bitcoin first came out, people who invested early made a killing over time. 
  6. Over its lifetime, Bitcoin has had 4 major crashes, but each time it has recovered to new heights. 
  7. The same goes for most other cryptocurrencies as well.  
  8. People are worried that the recent crash happened because of some major technical issues in the underlying technology, but it's still too early to tell if thats true or not. 
  9. Some people think we're going to see a crypto crash 2022 and that cryptocurrencies won't recover from this one. 
  10. Crypto is still pretty new and has a lot of growing pains as an industry. We don't expect another cryptocurrency crash or anything like that, but there will be ups and downs for many years to come.

read more: Cryptocurrency prices are crashing. But why? And will they recover?

Crypto will most definitely recover

The crypto market has been going through a rough patch of late. The last few weeks have seen the value of most major cryptocurrencies drop significantly, with Bitcoin dropping from its all-time high of $19,783 in December 2017 to only $3,700 today.

However, it’s important not to panic and sell your coins at rock bottom prices. Here are 10 reasons why you should hold on to your cryptocurrency investments:

  1. The market is still young.
  2. Cryptocurrencies will become more regulated and mainstream.
  3. There are many promising projects in the pipeline.
  4. More institutional investors will enter the market.
  5. The next generation of blockchain technology will be better than what we have today.
  6. Cryptocurrencies are still an excellent way to hedge against inflation or other economic crises in your country.
  7. Cryptocurrency exchanges can improve security measures and prevent future hacks.
  8. Bitcoin is still up over 1,000% since January 2017 – there’s no reason why this trend won’t continue as more people get involved in cryptocurrency trading every day!

read more: The Bitcoin News — Leading Bitcoin and Crypto News Source

Short-Term Crypto Crash Cycle

The cryptocurrency market has been volatile since its inception. It was not until 2017 that the prices of cryptocurrencies started soaring. The market capitalization of cryptocurrencies increased from $17 billion in 2016 to over $800 billion in 2018. This rapid increase in value attracted many investors who were looking for quick profits, which resulted in an influx of new money into the market.

The sudden increase in demand led to an increase in prices, which further increased demand and so on. In December 2017, Bitcoin reached its all-time high price at $20,000, which had never happened before. The price then crashed sharply by over 50% just a month later to around $10,000 per unit. This crash led to widespread panic among investors who sold their holdings at a loss and withdrew their funds from exchanges.

The panic sale caused prices to fall even further as more investors started selling their tokens at any price lower than their purchase price — regardless of whether it was profitable or not — just to get out of their investments as fast as possible before they became worthless.

Where Are We in the Cycle?

 The top cryptocurrencies have crashed in value, but the cycle will bounce back.

Cryptocurrency is volatile and can crash hard—but that's just part of the game.

The cryptocurrency market has been on a roller coaster ride lately, with Bitcoin (BTC) falling from $13,000 to $3,500 in only six months. But this is nothing new: the value of Bitcoin has risen and fallen several times before—and each time it's recovered.

In fact, there are two things that make us optimistic about crypto's future: first, there's the fact that a lot of people are still interested in cryptocurrency despite its volatility and recent crashes; second, there are some big developments coming up that could make cryptocurrency even more useful than it already is.

We're going to break down both of these points below so you can see why we're hopeful about crypto's recovery—and what you can do to help your investments recover too.

Will Crypto Recover?

The value of Bitcoin and other cryptocurrencies has been plummeting in recent months. But is this just a temporary dip or the end of the road?

Cryptocurrencies have fallen by more than 50 percent since January. At one point, Bitcoin dropped below $3,000, and Ethereum hit $100. The price of Bitcoin has fallen by more than 80 percent since its all-time high in December 2017.

While some people are calling this a bubble bursting, others say it’s just part of a normal correction that happens every few years. If you look at the history of crypto, there’s a good chance it will recover and retake its all-time highs.

The stock market could crash next, pulling down the U.S economy with it—and that would be bad news for cryptocurrencies too.

Here are three reasons why crypto might recover and why this crash might be different from previous ones:

  1. Cryptocurrencies, like Bitcoin and Ethereum are seeing wide spread losses in the past 24 hours.
  2. Bitcoin’s price has dropped by as much as 20% at one point.
  3. This is a big drop for any asset class but especially for cryptocurrencies which have historically been known for wild swings in price.
  4. Losing 20% of your money in a single day is painful, but it’s perfectly normal to see such drops when the price has increased so much in the preceding months, such as was the case with crypto currencies recently.
  5. That being said, there are reasons to think that this crash could be different than previous ones.
  6. In this article we cover 5 reasons why crypto might recover and why this crypto crash might be different from previous ones.

This chart shows that we are just at the beginning of the short-term cycle. The market will most likely recover within 6 months. If you invest money in cryptocurrency now and hold it for at least 6 months, you will probably double your money when the crash ends and the bulls return.