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Bitcoin just slashed the value of the crypto market again, indicating intense volatility
The year 2022 has been unarguably one of the toughest years for the crypto market. The crypto market slumber started when Bitcoin fell from its grace, causing panic and loss of confidence in cryptocurrencies among investors. The situation eventually led crypto businesses to file for bankruptcy and fire more than half of their employees, in fact, some exchanges were even forced to suspend operations altogether. Initially, market participants believed that this is part of a prolonged cycle that Bitcoin undergoes before it rallies back up again, only this time, these predictions have been entirely wrong and even if Bitcoin was undergoing a cycle, the period has passed long ago and the token is still struggling to regain back its position. This week has been especially difficult for the crypto market, given Bitcoin continues to plummet even after several major cryptocurrencies are rallying. Currently, at the time of writing this article, the Bitcoin price has declined back to US$21,000, which was its original resistance.
Bitcoin has lost thousands of dollars since its value started declining. But Bitcoin’s price actions began improving after the market was triggered to rise after the Ethereum Merge rally. The highest value that Bitcoin experienced over the past couple of months is US$25,000, but unfortunately, the crypto failed to keep up with this resistance. The token’s value has shrunk by over 70% this year, in fact, its recent predicaments cost the wider crypto market US$50 billion. Other altcoins like XRP, Cardano, Solana, and Avalanche, were also drastically impacted by this declination. Influenced by Bitcoin, Ethereum is also congested at the US$1.8k range, which is making experts speculate that the value of the crypto might soon dive and that it is only a matter of time when ETH’s price will also decline back to its previous resistance of US$1,100. However, Ethereum is about to launch its largest upgrade this year, which is speculated to aid the crypto’s price performance.
The Declining Value of the Crypto Market
A popular question among netizens is why is the crypto market crashing today and when will the value of the cryptocurrencies rise. Traders who had invested their valuable savings into digital assets wish to reap profits. Still, unfortunately, the growing fear and panic around the crypto market are triggering them to leave the market. Another factor that has impacted the crypto market is its relation to the global stock market. Investors might not have expected a decentralized market to be directly impacted by the economic and geopolitical crises that affect the mainstream financial markets.
Nevertheless, Bitcoin continues to remain a lucrative investment asset for those who still possess the risk appetite and can endure financial losses. Even though anticipation and speculation around the Ethereum Merge upgrade have spiked almost all major cryptocurrencies, the volatility still persists. Buying this dip would be a good strategy since Bitcoiners and other crypto fanatics continue to believe that cryptocurrencies are the future of the financial and economic markets, but investors should be highly cautious before investing in any cryptocurrency at this point, especially Bitcoin.
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