Where is the Crypto Market Heading after the 2022 Crash?

Where is the Crypto Market Heading after the 2022 Crash?

The Twittersphere is going wild regarding the state of the crypto market. With fear, uncertainty, and doubt (FUD) in play, one of the largest questions going through everyone’s minds right now is what will happen to the crypto market?

What Happened to Crypto Market?

Cryptocurrency prices have been declining month after month, prompting some experts to refer to the situation as a crypto winter. With Bitcoin down more than 50% from it’s all-time high (ATH), other major cryptocurrencies are following suit.

As a result, a growing number of recently-introduced investors are succumbing to FUD, unsure of whether there is any chance for cryptocurrency survival. However, for some long-term HODLers, this kind of volatility is really fairly normal and has long been anticipated in the market as a result of astronomical highs.

Even though the market has been in a bearish trend for some time, one specific occurrence had a significant impact on the crypto market as a whole. Due to its decline, the “Terra-LUNA crash” caused investors to reconsider their holdings because it suggested that not all cryptocurrencies would be secure.

How Did the ‘Terra-LUNA’ Incident Impact Crypto Market?

Since LUNA was one of the top 10 cryptocurrencies, it raised an alarm especially for crypto investors that like to invest money on other projects except Bitcoin and Ethereum which are considered by some experts as two of the most reliable cryptocurrencies. Since the two top cryptocurrencies themselves fell dramatically in price, this painted a pretty scary picture for some of the investors.

For investors that started buying crypto when it was at the top, seeing how much the market has dropped could be an alarming sight to see. This is especially true for those that bought at the peak of the bullish season.

After the Terra LUNA crash, investors are now starting to see beyond the hype and looking at the coin’s tokenomics, to see whether or not a project is indeed safe.

What’s Happening on Twitter?

The topic of which cryptos to avoid and why is trending on Twitter. Analysts are now gathering information about everything related to cryptocurrency, including whether or not specific cryptocurrencies are safe to invest in.

Another huge commotion is circulating around how Elon Musk is being sued over what happened to Dogecoin with a lawsuit calling the event a “pyramid scheme.” These are just some of the events that have been spinning fear into a lot of the newer investors.

Also Read: Everything about Dogechain the Layer 2 Network

How Crypto Traders Make Money in the Market ?

Traders use certain crypto exchanges that allow them to execute long or short market positions. A long position allows them to make money when crypto goes up, and a short position lets them earn money when crypto goes down. This way, no matter where the market is moving, they are still able to make money off of the volatility.

They have a lot of choice as to what company to trade with. Some major names in the crypto space include exchanges such as Coinbase and Bitcoin Profit, who also double-up as brokerages.

Why Aren’t Older Crypto Investors Worried?

When it comes to older experienced investors, the volatility of the crypto market is somewhat expected, and although they might be down a little bit, they have been in crypto way too long to know that this might just be another bear market cycle. Other investors are saying that now is a perfect time to buy more crypto since the current prices are considered discounts for the whole market.

Also Read: 10 Tips to Survive Crypto Bear Market

Crypto Market - Trading Chart

Market volatility is something that all markets experience, whether it be in stocks, foreign exchanges, commodities,cryptocurrencies or others. However, one thing that alarms many new investors is just how drastic the changes are when it comes to crypto market.

However, since they profit from volatility either way, long-term investors and holders of long positions (HODLers) do not care if an asset is experiencing ups or downs. On the other hand, traders believe that because asset prices fluctuate, it may be wise to buy now before they increase.

Conclusion

If you only invest money you can afford to lose, you can profit from the cryptocurrency market whether you’re a long-term hodler or a short-term investor. Due to market volatility, it is crucial to speak with a financial advisor first to ensure that your investment won’t have an impact on your total financial capabilities.

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