If you take a look at the overall crypto market right now, things aren’t looking too good. Pretty much every major cryptocurrency you can think of has a very low price. Are there actual reasons behind the current downswing in crypto prices? Or is it just a phase that the market is going to recover from? In this video, I’ll be taking a closer look at all of that to figure out why the crypto market is down right now and when it could potentially recover.
However, there are external factors that can lead to an upswing or downswing in crypto prices across the board. It’s all related to demand. Demand for a cryptocurrency is the single most important thing that investors rely on. Back in early 2021, the crypto world saw one of its biggest increases in demand to date thanks to the likes of Elon Musk and Mark Cuban constantly promoting cryptocurrencies on their platforms.
Regardless of whether or not Bitcoin - or any other crypto - is bad for the environment, the message to Bitcoin investors was clear - it’s time to sell. Suddenly, a lot of people lost their faith in Bitcoin, and a lot of people started selling fast. It led to one of the biggest crypto crashes in history. Bitcoin lost about 30-40% of its value, and other cryptocurrencies performed even worse. It was all-out chaos, and many people were worried that the market would never really recover.
This crash is likely going to last for a while now. It doesn’t really seem like the crypto industry is going to see an “event” that leads to an upswing anytime soon. World events usually lead to a massive upswing in crypto prices across the board. We saw the biggest rise in crypto ever during the peak months of the COVID-19 Pandemic, and we later saw another rise in crypto prices due to the Russia-Ukraine war.
We can almost always predict where Bitcoin is going to bottom out, but its peaks have been rather confusing. Sometimes, it peaks at around 45k or 50k. Other times, it goes all the way up to 60k. Regardless of what the “peak” might be, this past precedent gives you a pretty good idea of how the price of Bitcoin really works. Of course, there’s still a very real chance that Bitcoin might crash even further, but it almost seems as if Bitcoin is too big to fail at this point.