Crypto trading has become a popular way to make money in recent years. Buying assets at lower crypto rates and selling them when the price skyrockets are the essence of investing. However, operating amid increasing cryptocurrency prices isn’t a big deal, while working with crypto on a dropping market confuses most crypto holders and causes a new trend – when everyone is selling instead of buying.
Let’s see this process closely and understand why crypto rates are falling and how to act in this situation.
The Current Situation with Cryptocurrency Rates In The Market
Those who have kept track of the market lately cannot but agree that it crashed and touched a new level of low capitalization – $977 billion. Rates of probably all digital assets in the market show a significant drop. Recently, the rate of the most popular asset, Bitcoin, has established a new all-time minimum lower than $24000, which is the lowest price since December 2020 (as of late June 2022). The situation was worsened by crypto lending service Celsius which ceased funds withdrawals and transfers, explaining it by extreme market conditions. It gave a push for investors to sell their Bitcoins massively. To date (June 25, 2022), the leading crypto in the world is traded at $21,214. Noteworthy that the asset rate reached $69,000 in November 2021.
As the price of the top asset crashed, probably all other assets followed its downward trend like it usually happens. Investors are afraid to purchase high risky assets and demonstrate a low-risk appetite.
Another project that affected cryptocurrency rates is Terra (Luna), which crashed in May 2022. The platform’s inner algorithms that were used to balance supply and demand fell apart, resulting in massive selling of this asset by investors. It led to a significant drop in the asset and a total collapse as a result.
Amid the entire crypto market drop, there is an opinion that such down trends and market sentiments open an excellent opportunity for investors to purchase crypto assets. It’s up to you to buy crypto or not. However, the most significant investment is usually created precisely during such crisis periods.
To track cryptocurrency exchange rates in dynamics, you can use a well-known Coinmarketcap resource or popular crypto platforms.