Cryptocurrency is a digital currency (not a physical one), in which transactions are verified and records are maintained by a decentralised system using Cryptography, rather than by a decentralised authority. The main purpose of crypto currency is to fix the problems of traditional currencies by putting the power and responsibility in the currency holders’ hands. However, the world of Digital currency is going through a meltdown, which can be referred to as the Crypto crash 2022.
CRYPTO CRASH 2022 :
During the Coronavirus Pandemic, people have largely started investing in virtual currencies. The gains from the cryptocurrencies at that time was soaring higher and higher and several individuals and institutions invested in currencies like Bitcoin, Ether, etc. Prominent tech leaders embraced the technology as it grew from a novel curiosity into a cult-like movement. The value of cryptocurrencies exploded, minting a new class of Crypto billionaires. The Digital currency prices reached an all-time high last year and have since started sliding, as fears over economy have started growing. However, the meltdown has gathered momentum from May 2022, when TerraUSD, a stable coin imploded. The price of Bitcoin plunged to its lowest since 2020 and Coinbase, the large crypto exchange tanked in value.
WHY IS CRYPTO CRASHING IN 2022? :
Cryptocurrency market again crashed to a new low in June,2022. The global crypto market cap shrunk below $1 Trillion to $977 Billion. The price of almost every top coin is now worth half or even less than their all-time highs.
The immediate reason for the crypto crash appears to be a massive sell-off by investors owing to rising inflation fears. Investors are also staying away from investing in riskier assets. With all it uncertainties and volatilities, crypto is considered as one of the most volatile instruments for investment purpose. Rising interest rates along with the economic uncertainty caused by Russia’s invasion of Ukraine, are also important factors contributing to the meltdown.
WILL CRYPTO RISE AGAIN IN 2022? :
“Will Crypto rise again?” – This is probably one of the biggest questions on the minds of every cryptocurrency users these days. The worldwide cryptocurrency market has massively crashed in the past two weeks with several top currency prices dropping to new lows in 2022.
However, experts are quite hopeful about the recovery, too. Despite the massive crash, this is not the worst global crypto scenario. They feel that the cryptocurrencies can expect a recovery as soon as the world reverts back from the global economic meltdown. Meanwhile, the global crypto market seems to have sustained the recent crash storm and several blue chip cryptos are again in the green. Bit coin has recovered to $30,000 level.
CONCLUSION :
Cryptocurrency is said to be the future of money. Though the crypto market is currently facing a meltdown, financial experts expect it to rebound and reach an all-time high around 2025. Mostly it is expected that the cryptocurrencies can expect a recovery as soon as the world reverts back from the global economic meltdown.