Second Crash of Cryptos In 2022

A crypto crash in 2022 made the headlines as the second crash of cryptos in 2022. The second cryptocurrency market meltdown of the trading year to date occurred in June 2022.

The failure of the Terra Luna cryptocurrency exchange in May removed $500 billion from the market for cryptocurrencies. For the first time since the beginning of the year 2021, the market valuation of the cryptocurrency business has been below $1 trillion for the first time.

It’s possible that a lot of crypto investors believed that the 12th of May was the best opportunity to buy the dip. Back then, the price of Bitcoin had dropped all the way down to $28,000 from its previous high of $40,000. But if you had bought at $28,000, you would be down thirty percent on your investment today because the price of Bitcoin only barely holds above twenty thousand dollars.

The crypto crash of June 2022 created chaos in the crypto industry. All of this raises an important question: should investors buy the dip if there is another crash in the crypto market in 2022?

Why is the cryptocurrency market is crashing again in June 2022?

While the unpegging of UST from its $1 price may have contributed to the first cryptocurrency fall, it was the primary cause of the second crash of cryptocurrency in 2022. The cryptocurrency crisis is a macroeconomic factor.

According to a survey that came out the week before last, the Consumer Price Index (CPI) pegged inflation in May at 8.6 percent. This caused panic throughout all markets, as seen by a 900-point drop in the Dow Jones Industrial Average and the beginning of a bear market for the S&P 500.

Inflation is currently at its highest level since 1981, which also contributed to a 4.68 percent decline in the Nasdaq composite.

On June 13, 2018, the price of bitcoin experienced a precipitous drop, going from $27,000 to $22,000. The price of bitcoin continued to fall throughout the month of June and on June 15, reaching a new low of $22,180 today in trading.

The lending and staking network Celsius froze more than $11 billion in assets on Monday as a knock-on effect of dropping cryptocurrency prices. Coinbase, the most popular cryptocurrency trading platform in the United States, made the announcement on Tuesday that it would be laying off 18 percent of its full-time employees.

The unfavorable news surrounding cryptocurrencies, in conjunction with adverse market conditions, is the reason why the cryptocurrency market is plummeting once again in June of 2022.

At the current Bitcoin price, should you buy the dip?

There is some evidence that trading indicators are trending in Bitcoin’s favor.

The relative strength index (RSI) for Bitcoin as measured over the past 14 weeks is currently sitting at 26. Bitcoin’s price has dropped below its 200-week simple moving average, which is currently sitting at $22,350.

Both of these important factors point to the fact that now may be a good time to buy Bitcoin. However, it is difficult to determine where the bottom of the Bitcoin market is.

In the short term, these could cause the cryptocurrency market to be more volatile, but in the long term, they could help to keep inflation under control and restore some stability to the market despite the crypto crash in June 2022.

What are some other good cryptocurrencies to buy in June 2022?

Despite the second crash of cryptos in 2022, tokens that have solid underlying systems have the best chance of surviving a crash in the cryptocurrency market like the one we are experiencing in June.

At the beginning of May, Terra Luna was one of the top 10 cryptocurrencies by market capitalization. The token’s value has now dropped to $0.00005719, a decrease of 99.99 percent from its previous price of over $80 in May. After being depegged from its original price of $1, the algorithmic stablecoin known as UST currently has a value of $0.007334.

BUSD broke into the top 10 of the cryptocurrency rankings and is now sitting in sixth place in terms of market capitalization. BUSD is the only stablecoin that is backed by US banks, it has regular monthly audits, and it is the native stablecoin of Binance, which is the largest cryptocurrency exchange in the world based on market capitalization.

Additionally, BUSD is to blame for the recent price increase of 12 percent seen in the reflection token EverGrow Coin.

EverGrow Coin imposes a transaction tax of 14%, of which 8% is returned to investors in the form of BUSD rewards. To date, investors have been rewarded with more than $37 million, and holders of EverGrow Coin have the opportunity to earn BUSD rewards for any buy or sell order involving EGC. This indicates that investors are still able to receive passive income despite the recent decline in the value of cryptocurrencies.

EverGrow Coin may be a suitable investment for you in June 2022 if you do not have experience with day trading, short trading, or picking up fast-rising alternative cryptocurrencies to earn a quick profit.

In light of the current state of the market, as we see the second crash of cryptos in 2022, it can be challenging to make the appropriate choice on which cryptocurrency will become the new standard. Because fear affects everyone to a greater or lesser degree, it is important to have an understanding of the market, make an informed decision, and trade your tokens using SwapWolf.

Disclaimer: Unless otherwise stated, the information in this article is solely the author’s opinion and does not constitute investment advice. This information does not constitute investment or financial advice, and by using it, you acknowledge that. Always do your own research before making any investments.