Is Now The Time To Crypto Dip? Crypto Crash

The current situation in the cryptocurrency market is not too optimistic. Almost all cryptocurrencies are much cheaper than just a year ago, and investors are panicking. But why is crypto crashing currently, and what’s the cause of it? Will 2022's crypto dip become a widely announced end of the cryptocurrency market? Should I buy Bitcoin, or is it a good time to sell it?

This article is an analysis of 3 cryptos: Bitcoin, Ethereum and Binance Coin. These are an excellent choice for beginning investors. In our opinion, they have great potential for growth, strong market position and can be traded on almost all exchanges. If you are interested in the behavior of smaller cryptocurrencies like XRP or Solana, you can assume that their prices will behave similarly to those of Ethereum, but the percentage increases and decreases may be even greater.

Why is crypto crashing?

In the case study on the current Bitcoin crash, you can read that cryptocurrency prices are extremely volatile. Every few years, a bull market comes along, and right after reaching the ATH, a steep price drop begins. Such a situation was last seen in 2020/2021. Is it possible to point out the reasons corresponding to why is Bitcoin crashing this time? As before, confidence in cryptocurrencies was damaged by one of the exchanges. In addition, energy prices have made Bitcoin and Ethereum unattractive.

How much is Bitcoin right now?

Before analyzing the future, it is useful to know what is happening now. Since mid-August, the Bitcoin price has been oscillating around the $20,000 level. Sometimes demand rises, and price goes up as high as 22k, to which it responds with drops to around 19 thousand.

The Ethereum price is more fluctuating and is currently settling around $1,300, but a drop as low as $1,000 is likely. The ETH merge has discouraged investors. Binance Coin currently costs a little over $250, but its price has been falling steadily since July. Most investors believe that levels below $200 are unlikely, because of high BNB importance in Binance ecosystem.

How have ETFs and CFDs reacted?

There are now several ETFs and CFDs related to Bitcoin. The 2022 crypto dip has caused the prices of cryptocurrencies-related assets to drop significantly.

Futures prices are very similar to Bitcoin prices at around $20000. Note, however, that the charts do not always correspond to each other, as the markets react with a time lag. Bitcoin and Ethereum ETF prices also decreased, but not as much as for CFD’s. Still, it is possible to see fear among investors on the global market.

Price predictions

It’s possible that Bitcoin will crash further. Using historical data analysis, which is proving to be very effective, we will try to assess possible scenarios for market behavior. Cryptocurrencies have been behaving cyclically since their beginning.

The most realistic scenario

In the most likely scenario, Bitcoin will crash a little more, and the price minimum will be at $14-18,000. Along with Bitcoin, other cryptocurrencies such as Ethereum and Binance Coin will also lose.

For the next 2 years, everyone should be prepared for little investor interest in cryptocurrencies, prices similar to the current ones and broad pessimism. The next bull market should occur in 2024 or 2025, and the new ATH should exceed $100 or even $150,000. However, theories about Bitcoin prices exceeding $1 million should be treated as dreams.

When should I buy Bitcoin according to this scenario? In 2022 or 2023

Optimistic scenario

Some analysts say that cryptocurrencies will start getting more expensive later this year, and that the current Bitcoin price declines are temporary. They justify it by “promising chart shapes” and inflation to motivate people to buy bitcoin. Is it a good time to buy bitcoin in such conditions? Yes, however, it is advisable to use common sense, because the level of risk is high.

Worst case scenario

Unfortunately, not every scenario is positive. Pessimists claim that rising energy prices, negative social attitude and spectacular cryptocurrency collapses will ensure that 2022 is not the last Bitcoin crashing year and this is just the beginning of the problems. This is a very extreme opinion, and it's quite unlikely that cryptocurrencies will never beat their Baths again.

What about other cryptocurrencies? Should I buy Ethereum now?

Current crypto dip reflects the most on Bitcoin. It is the most well-known cryptocurrency, so everyone is thinking about it first. Is this a good time to buy other cryptocurrencies?

Yes! Despite the fact that the current economic climate is not the best for buyers, it's certainly worth tracking prices. Smaller cryptocurrencies such as Ethereum, Binance Coin, Monero and Litecoin lose more when investors escape the market, but gain more when interest in cryptocurrencies increases.

Is it a good time to buy Bitcoin?

According to the most likely scenario, you should buy Bitcoin in 2023 or 2024. So, that means that buying Bitcoin this year will turn out to be a mistake? Investing in cryptocurrencies is never a clearly bad thing. Obviously, profits will come a little later and the money frozen in this way will not be able to earn in other ways, but now is a pretty good time to invest in Bitcoin, Ethereum, and other cryptocurrencies.

In times of high inflation, which practically exceeds 5% around the world, almost any investment is worthy of consideration, as it allows you to fight the loss of purchasing power. If you plan to keep your money in a bank account or PayPal, cryptocurrencies will certainly be a better choice.

We hope you already know all about crypto dip. Cryptocurrencies are very complex investment instruments, and their short history raises concerns for many investors. The high level of risk makes potential losses mentally taxing, but potential gains should not be neglected. It is definitely worth investing in your knowledge together with Paidwork. Be sure to stay up to date with our new articles!

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