Germany's Nuri bank has become another victim of the crypto winter. It has notified its 500,000 customers to withdraw assets from their accounts as the company heads to close and liquidate the business.

In August, Nuri first reported liquidity issues after revealing that it had declared bankruptcy due to the economic strains of crypto winter. At the time, it announced that operations would go on as usual while it worked on a restructuring strategy and secured a buyout. However, an acquisition did not take place.

Nuri CEO Kristina Mayer stated in an 18 October [blog post](https://nuri.com/blog/letter-from-ceo/) that the company could not continue operations despite its best efforts.

## Nuri urges users to withdraw funds before 18 December

Nuri asked its customers to withdraw all of their funds before the deadline of 18 December. By contrast, bankrupt cryptocurrency lender [Celsius](/news/article/celsius-bankruptcy-protection) halted user fund withdrawals before everything went down.

The [bank](/news/article/crypto-friendly-banks-uk) assured its customers that all funds would be accessible and available for withdrawal until the specified date. Users' account's assets are all secure and unaffected by Nuri's bankruptcy. According to the post, trading will be available until 30 November, 2022.

Mayer stated that the challenges of 2022 were "insuperable" due to a tough economic and political environment and that this had prevented Nuri from raising new funds or finding a buyer.

While Mayer did not name its business partner, Celsius seems to be the most likely candidate because it had partnered with Nuri to offer Bitcoin interest accounts to its customers. When Celsius declared bankruptcy, these accounts were frozen.

Mayer also stated that the company remains enthusiastic about the potential of blockchain-based financial services.

She said Nuri is "convinced" that blockchain, cryptocurrency, and decentralised finance will offer opportunities that "add true value to the lives of people".

## The adverse effect of crypto winter

The term "crypto winter" refers to an underperforming cryptocurrency market. There have previously been several crypto winters. For instance, cryptocurrency prices dropped and remained well below previous peak prices from late 2017 to December 2020.

But the 2022 crypto winter is different. Many renowned businesses have been closed in the year 2022 because of liquidity issues.

Nuri bank joins a growing list of cryptocurrency companies that have had to halt trading and withdrawals due to unfavourable market volatility, including [Voyager Digital](/news/article/crypto-lending-platform-voyager), [Freeway](/news/article/freeway-crypto-halts), [Celsius](/news/article/celsius-data-breach) Network LLC, and Babel Finance.


Nuri Bank Asks 500k Users to Withdraw Funds

Wonderland crypto is one of the notorious [stablecoin](/articles/learn-moni/what-are-stablecoins) projects that suffered in this year's market downturn. The project started as a DAO offering high-yielding and low-risk stablecoins. But later, it became a crypto venture capital fund, supporting new businesses.

However, the project started to tumble in late 2021. Other than the crypto winter, it also faced a series of issues. Among them were strategy loopholes, their developer's criminal past, and overleveraging that led to a crash. However, its creators have decided to [relaunch the project](https://twitter.com/danielesesta/status/1551663669460754434).

Here's everything you need to know about the Wonderland crypto crash to help you decide if it will recover or not. 

## How does Wonderland crypto work?

Wonderland is a decentralised autonomous organisation (DAO) that introduces a unique stablecoin. Its governance is through the use of the TIME token. The token has stability in its value as numerous other tokens back it. These include; Magic Internet Money (MIM), TIME-AVAX LP, Wonderful Memories (wMEMO), and wAVAX. 

Wonderland is an Olympus DAO fork built on the Avalanche Network. Its ecosystem works on the Proof-of-reserve (PoR) mechanism. 

PoR requires bond reserves for validation. If you own different tokens through which you can mint TIME, you can become a validator.
Though the DAO is built on the Avalanche Network, it has cross-chain property. That's why it is compatible with various other tokens. TIME is distinct from most stablecoins pegged with fiat currencies. It gets its consistency and stability through the basket of assets.

## Wonderland crypto price

The claims of stability and consistency have fallen short for the project. The ecosystem's major coin, TIME, is in shambles. Also, the TIME-AVAX LP and wAVAX coins have been discontinued and cannot be used for minting TIME. 

Currently, TIME's price is just over $11. This year, the token's price has declined by more than 95%. In November 2021, its price stood at over $9000. Since then, it has continued on a downward trend. Also, there is no sign of stability in its price.

On the other hand, wMEMO's current value is still around $24,000. Nonetheless, its price is also quite unstable and is not gaining traction in the market. 

## How did Wonderland crypto crash?

Several factors are at play regarding the downfall of Wonderland crypto.

### Here are a few of them:

#### 1. The buyback strategy
wMEMO is a wrapped stablecoin which has a set value. As its price started to fall below this value, the firm opted for the buyback strategy. To increase the cost of wMEMO, the firm used its treasury fund to buy the coins from the market. Temporarily, there was an improvement in its value. However, it did not work well in the longer run. The bearish market continuously affected the coin's price.

#### 2. Overleveraging & Investors liquidating their assets
Secondly, as the buyback strategy was public, many investors joined the campaign to make profits. They took loans to purchase more wMEMOs and pledged their existing coins as security. So, when the value of wMEMO continued to decrease, investors liquidated their funds to pay off debts. With more liquidation, the price dropped further. This jeopardised the firm's financial state as the overall debt constantly increased. 
The debts also caused a delay in the airdrops. Airdrops are a percentage of coins acquired as a venture capital fund. Three airdrops needed to be distributed among investors between December and January. However, all of them got delayed, causing more suspicion among investors. 

#### 3. CFO Sifu's controversial background
One of the significant blows for Wonderland crypto was the controversial background of its CFO. Investors started to lose confidence as its pseudo-anonymous CFO, Sifu, turned out to be Michael Patryn. He is a convicted felon for the $100 million scam through a Canadian exchange. Patryn disappeared with the money in 2019 and launched Wonderland in 2021.

Patryn also worked with the lending firm, Abracadabra and MIM for this project. Meanwhile, Abracadabra Money founder, Daniele Sestagalli, declared that he knew about Patryn. He maintained that [an individual's past actions don't determine their future](https://twitter.com/danielesesta/status/1486591436233404421). This received significant criticism from the industry, and his venture, Popsicle Finance, also suffered. 

#### 4. Sifu's exit with an alleged rug pull
An alleged rug pull was another reason behind the project's downfall. It was not only investors who took leveraged positions because of buyback. But the CFO himself withdrew millions from the treasury before exiting. Though the firm tried to cover it up as compensation for his services, it raised many questions about a rug pull attempt. 

## Bottom line
Wonderland crypto was once a promising project introducing a distinctive stablecoin backed by a treasury. But, so far, its algorithm has failed to perform. Both its tokens, TIME and wMEMO, have been experiencing a downward trend since November 2021. Moreover, its ties with an alleged fraudster affected the investors' trust in the project. Though the developers have announced a relaunch, it might be challenging to regain investors' confidence and trust. 



Wonderland TIME Crypto: Everything you need to know

The freezing crypto winter continues as the [Bitcoin (BTC)](/coins/btc) crashes to $18,762. In the last 24 hours, its price has decreased by 5.85%. Since July, this has been the lowest point for [Bitcoin](/articles/learn-moni/what-is-bitcoin), showing signs of a further downward slope. 

On September 6, it was traded at $19,930 and experienced a sudden plummet. This price correction caused the liquidation of $74 million from BTC futures on the exchanges. However, before the BTC crash, Bitcoin experienced a 2% gain on the same day. If that trend persisted, it would have taken it to over $20k.

![btc crash.png](https://s3.eu-west-2.amazonaws.com/prod-monitalks-media/btc_crash_c7827ab67e.png)

[Source](https://coinmarketcap.com/currencies/bitcoin/)

## BTC crash and altcoins tumbling

The BTC crash has affected the entire crypto market. Most of the altcoins are in a slump right now. Though Ethereum has gone through the Bellatrix upgrade, it also shows a downward trend. Currently, [ETH](/coins/eth) is down by almost 9%, and it’s worth only $1,517.89. 

Meanwhile, other altcoins are also experiencing the severity of crypto winter. Binance coin (BNB) is currently down by over 5% in the last 24 hours. Moreover, one of the highest performing cryptocurrencies, [Polygon’s MATIC](/coins/matic), is experiencing a 10% downward slope. 

Solana has also dropped by 5.5%, and Dogecoin has fallen by 6.46%. Polkadot and Cardano both have declined by 8% since yesterday. In sum, the entire market is in red.

## Crypto market crash: Why is it happening?

There are many macroeconomic factors behind the recent crypto collapse. However, one of the main reasons behind it is the USD rate. The USD has reached its 20-year highest mark. The dollar spot index of Bloomberg is showing a record surge. Meanwhile, the treasury bills are also strengthening because of quantitative tightening from the Fed.

On the other hand, the traditional market is also falling. The NASDAQ has declined by 0.7%, and S&P 500 also plummeted by 0.4%. Similarly, the price of gold has also experienced a drop. 

Since the cryptocurrency market depends on these macroeconomic factors and the traditional financial markets, it is showing signs of collapse. 




BTC crash: Price falls below $19K, lowest since July

A noticeable [Bitcoin](/coins/btc) price crash happened during the weekend, pulling Ethereum, Ripple and other altcoins with it. 

There were two main causes for the Bitcoin price crash; one resides in the announcement of the Celsius Network about halting all of its client withdrawals, while the other is that investors are pretty scared of the Federal Reserves’ next move.

Falling below $24,000 on Monday, Bitcoin found itself at its lowest level since December 2020, as traders are dumping crypto amidst a wider sell-off in risk assets.

The top cryptocurrency went down by 13.72% in the last 24 hours to $23,751.61 at the time of writing. In the last seven days, the Bitcoin price has fallen by 24.44%.

The brutal market downturn seems to have started with fresh inflation concerns about Federal Reserve acting more aggressively to contain soaring inflation. 

## Altcoins Take a Stumble

According to [CoinDesk](https://www.coindesk.com/), during the last 24 hours, Ethereum went down by 18.16% to $1,198, while BNB fell by 14.97%, Cardano by 13.57 and XRP by 11.89%. 

Also, Celsius Network, one of the biggest crypto exchanges said that “due to extreme market conditions”, it is pausing all withdrawals, Swap, and transfers between accounts. 

Even though Celsius founder Alex Mashinsky tried to tweet away the fears of the Luna crisis impacting the exchange by promising Celsius had “minimal exposure” to Luna and UST, we suspect that last month’s crash of Do Kwan’s Terra empire shook investors’ confidence within the crypto market whose market cap fell below the $1 trillion mark to 977 billion.

Edul Patel Co-Founder and CEO of crypto investment platform Mudrex,  commented the cryptocurrency market “has been under pressure from the Federal Reserve, hiking the interest rates to combat inflation over the past few months. 

“Bitcoin, Ethereum, and most cryptocurrencies suffered losses over the weekend after a broad sell-off following the data showing US inflation hitting a 40-year high,” he said.


Bitcoin price crash amid ‘extreme market conditions’

A considerable degree of demand appears to have been built at the $20,000 level for Bitcoin after the drop last month, creating a floor. 

## Assessment of the Bitcoin drop

On Monday, blockchain research startup Glassnode released its latest "The Week On-Chain" [report](https://insights.glassnode.com/the-week-onchain-week-31-2022/), which assessed [Bitcoin's drop](/news/article/norway-bitcoin-mining) during the previous week. 

Analysts cited sideways growth in transactional demand, active Bitcoin drop addresses continuing in "a clearly defined downward trend”, and decreased network fees as reasons to dampen investors' enthusiasm about the 15% increase in BTC price over the last week. 

[According to CoinGecko](https://www.coingecko.com/en/coins/bitcoin), Bitcoin has been down 2% in the previous 24 hours, trading below $23,000 to $22,899. 

The features of a bear market seem prevalent, such as a decrease in on-chain activity and a shift away from speculative investors and toward long-term holders.

According to Glassnode, a drop in network activity might indicate a lack of fresh demand from speculative traders over long-term holders and investors who strongly believe in the network's technology. 

The present network demand pattern and the one developed in the 2018-2019 period were comparable, according to the research. Like the last cycle, network demand dwindled following the all-time high in BTC price in April 2021. Demand increased noticeably in the months running up to the following November when prices reached a new high. 

However, demand has been declining since last November, leading to a bitcoin drop, with a significant dip during the mass sell-off in May:

Network costs have entered "bear market territory" due to a lack of demand from anybody other than hardcore Bitcoin fans. Daily network fees hit 200 BTC when prices reached an all-time high last April. Over the last week, daily fees totaled only 13.4 BTC. 

If fee rates climb significantly, demand is increasing, which will assist in supporting future "positive structural shifts" in Bitcoin network activity:

## Optimism amid the Bitcoin drop

On a brighter note, capacity in Bitcoin Lightning Network (LN) public channels continues to reach new all-time highs. Despite the current weak market, total LN public capacity has reached 4,405 BTC, a 19% growth over the previous two months.



















Has Bitcoin's drop reached its floor?

As Q2 2022 concluded, many companies shared their data for cryptocurrency losses.

Major United States crypto companies like Coinbase and Galaxy Digital have reviewed their activities. The data they shared further substantiates that we are experiencing a [crypto winter.](/news/article/crypto-market-crashing)

As per Coinbase, the dip for the previous quarter reached more than $1.1bn. Galaxy Digital's crypto depletion for the same period was $554 million.

## 'Fast and Furious' Cryptocurrency Losses for Coinbase

One of the largest crypto exchanges, Coinbase was listed by the NASDAQ in 2021. It has shared the data for its crypto losses of more than $1.1 billion in the second quarter of 2022. Since its stock exchange listing, this has been the worst quarter for the firm.

The company announced the deficit via a [shareholder letter](https://s27.q4cdn.com/397450999/files/doc_financials/2022/q2/Q2-2022-Shareholder-Letter.pdf) on August 9, 2022. The letter mentioned that consumer behaviour amid this ‘fast and furious’ crypto winter is the same as previous ones. 

Moreover, it revealed that the company is focusing more on innovation in this downward market as it will help the company in the next cycle. 

Coinbase shared that its revenue was $802.6 million for Q2. The firm experienced a 45.1% dip in comparison to Q1. Also, if you compare this revenue to Q2 2021, there is a decline of around 153.1%.

The firm is looking to join forces with [Blackrock](/news/article/blackrock-crypto). Both firms agreed to the partnership to support Bitcoin trading. The alliance announcement has been embraced positively in the stock exchange as it saw a surge of more than 15%. Analysts believe that, with Coinbase encountering losses and probes from SEC, a partnership with Blackrock might help the firm financially.

## Galaxy Digital Q2 Crypto Losses Reached $554.7m

Another digital assets giant, Galaxy Digital, shared its report for the second quarter of 2022.

As per the data, the deficit piled up to $554.7 million in Q2. In Q2 of last year, the company's total debt was only around $182.9 million.

The cryptocurrency losses for the major firms suggest a further aggravating crypto winter.


Cryptocurrency Losses for Major US 

After the algorithmic stablecoin, Terra lost its peg to the US dollar, this was accompanied by a bank run that rendered $40 billion in tokens almost worthless. Crypto collateral valuable enough to cover loans one day became highly undervalued or illiquid, casting uncertainty on the fortunes of seemingly invincible hedge funds and other high-profile lenders.

## What led to the crypto market crashing?

The seeds that spawned the crypto market crashing — greed, excessive leverage, and a delusional belief in price going up — are not new. They were there when almost every other asset bubble burst. However, crypto is a new and highly unregulated market, with boundaries blurred and failsafe weakened by the notion that everyone engaged can get wealthy together. 
Leveraged trades rely on borrowing, increasing the risks and profits. There are an estimated 1,900 crypto hedge funds, and the majority appear to utilize leverage to trade at bigger volumes with collateral that may not meet requirements of centralized financial regulation.

## Analysis of crypto market crashing

In a December study, the Bank for International Settlements (BIS) highlighted the implications of decentralised financing's high leverage. The BIS noted that when debt decreases due to investment losses or depreciating collateral, investors are obliged to liquidate assets, exerting further downward pressure on prices. Crypto has had multiple large dips in its history, dubbed "crypto winters" by the community and a bear market by the rest of the financial industry. Still, the sector's expansion and increased acceptance from Main Street to Wall Street means more is at stake today.

Its expansion has further amplified the impact of this year's turbulence: After the expiration of the crypto market crashing in 2020, the industry peaked at $3 trillion in total assets last November before plummeting to less than $1 trillion. 

If [Terra](https://www.cnbc.com/2022/05/30/terra-2point0-new-luna-cryptocurrency-is-already-crashing.html) led to this crypto market crashing and was the equivalent to Bear Stearns in the 2008 financial crisis, many believe that the Lehman Brothers moment is just around the corner. The failure of lenders to make margin calls was an early warning flag in the 2008 financial crisis, and crypto has experienced its counterpart this month: Celsius Network, Babel Finance, and Three Arrows Capital all disclosed severe issues when digital-asset values fell, causing a liquidity crunch that ultimately comes from the industry's interdependence.

Consumer confidence and perception of bad actors had a role in the crypto market crashing and the financial crisis, but what is occurring now is money flowing out of deployed, working systems due to over-leverage and irresponsible risk-taking." 

Leverage allows investors to generate more returns with less investment during bull markets, but when the market falls, such positions swiftly unravel. Also, in crypto, such bets frequently include more than one type of asset, increasing the likelihood of a crypto market meltdown.

## How Celsius contributed to the crypto market crashing

Over the last several weeks, a crypto news site has received many complaints from Celsius users. Some are concerned about losing their houses after being liquidated on millions of dollars of loans secured by the company's cratering CEL token. Celsius has been leveraging client assets to pay out 17 % APY utilising a variety of DeFi protocols, including Terra's Anchor and Ethereum mainstays Lido and Curve. 

Given the danger of accepting crypto loans, particularly those via decentralised finance applications that do not use intermediaries like banks, sometimes ask borrowers to put up more collateral than the loan is worth.

[Celsius](/news/article/celsius-bankruptcy-protection) began lending to human traders two years ago, managing risk by requiring collateral from these borrowers. Celsius leased financial assets to players that can profit from arbitrage, market making, or shorting specific equities or digital assets." 

However, as market values fell, it led to the crypto market crashing. After Celsius started lending in the DeFi space, exposing borrowers to risky market fluctuations, whereas lending to a creditworthy institutional borrower is entirely different. The danger is not the same as relying on cryptocurrency market prices to remain stable or increase."

Loans that were previously over collateralised are now in danger of liquidation. This process is automated in DeFi, worsened by the increase of traders and bots looking for methods to make quick profits. 

## Views of Finance Professor on crypto market crashing

According to a finance professor, John Griffin at the University of Texas at Austin, the spike in cryptocurrency prices last year was fueled by leveraged speculation, possibly even more so since the previous crypto market crashing. A low-interest-rate environment and ultra-accommodative monetary policy helped set the scene.

With interest rates increasing and a lack of trust in leveraged platforms, the deleveraging cycle had the impact of unwinding these prices far faster than they grew, the finance professor added. Though traditional markets frequently rely on a slow and constant level of leverage to expand, the effect appears to magnify in crypto due to the concentration of speculation in the industry.

Regulators are watching the industry, looking for indications of instability that might jeopardise their fledgling ambitions to regulate cryptocurrency. Even laws proposed in the spring have changed in the aftermath of Terra's collapse, with some countries considering measures to mitigate the systemic impact of failing stablecoin systems. 

He added that while there may be occasional bull rallies, he does not see the cycle reversing soon. He said that when the Nasdaq bubble burst, analysis indicated that wise investors were among the first to exit and sell when prices fell, whereas retail investors bought up and lost money. 

Digital assets were the domain of affluent retail investors and a small handful of crypto-focused firms. Now, the industry has developed a greater appeal to pump-and-dump investors and hedge fund giants, prompting authorities to routinely intervene with comments warning consumers of the risks of trading such products.

After witnessing the crypto market crashing many times and broad acceptance, most investors now see crypto as another asset class and treat it like the rest of their portfolio. As a result, cryptocurrency values correlate with other asset classes, such as technology stocks. 

The crypto market's experimental and speculative characteristic exacerbated the meltdown, knocking out small retail traders who put their life savings into unregulated projects like Terra which have no track record. Furthermore, the industry is overhyped by new generations of crypto cult members using social platforms like Twitter and Reddit. Exchanges have also contributed, with FTX, Binance, and Crypto.com investing in marketing and high-profile sponsorships.




Crypto market crashing due to deleveraging

The Bitcoin dip has been going on for a while now, and some people wonder if it is coming to an end. While we cannot be certain, there are a few things that could indicate that the dip might be nearing its end.

## Signs the Bitcoin Dip Might Be Nearing its End

One of the most obvious signs is the recent increase in BTC prices. After months of decline, Bitcoin prices have started to rebound in recent weeks. This could signify that investors are beginning to see value in Bitcoin again and are willing to buy it at higher prices.

Another sign is the increasing number of transactions on the BTC network. Despite the price decline, the number of BTC transactions has continued to grow throughout the dip. This indicates that people are still using BTC and are finding ways to transact despite the lower prices.

The increasing number of Bitcoin-related projects and businesses could also be a sign that the Bitcoin dip is ending. Several projects were postponed during the dip, but there are still a number of companies working on new Bitcoin-related products and services. This suggests that there is still interest in BTC from both businesses and consumers.

What’s more, key indicators suggest that [BTC](/coins/btc) is currently undervalued. For example, the Bitcoin Relative Strength Index (RSI) is at 26, the lowest since 2018. This indicates that Bitcoin is currently oversold. In addition, Bitcoin has fallen past its 200-week moving average of $22,350, another sign that it's a bargain.

Of course, predicting where the bottom is for Bitcoin is impossible. Values fluctuate wildly, driven by speculation, hype, and the whims of the broader economy. However, the signs mentioned above suggest a good chance that the worst of the Bitcoin dip is over.

While some investors see this as a buying opportunity, others are worried that the market is in for more pain.

## Shark Tank's Kevin O'Leary Buying the Dip

TV personality and investor Kevin O'Leary said he's [taking advantage of the recent dip](https://markets.businessinsider.com/news/currencies/kevin-oleary-shark-tank-crypto-investing-strategy-portfolio-bear-market-2022-6) in prices to add to his positions in Bitcoin and Ether.

"I'm a buyer of dips; that's my general philosophy," O'Leary said on CNBC's Halftime Report. "I think we're in a long-term bull market for Bitcoin, and I don't try to time the short-term gyrations."

O'Leary, who has been investing in cryptocurrencies for about two years, said he sees Bitcoin as a store of value similar to gold. He also believes that Ethereum, the second-largest digital currency by market value, has more upside potential than BTC because it's being used more by corporations and developers.

"In the short run, anything can happen," O'Leary said. "But if you're a believer like I am in the long-term story...then you buy the dip."

## Factors to Consider

- First is your risk tolerance. What level of risk exposure are you willing to take on? If you are risk averse, then buying the dip may not be for you.
- Second is your time frame. Are you investing long-term, or are you looking to make a quick profit?
- Thirdly, consider your investment goals. Know what you hope to achieve by investing in Bitcoin.
- The other important thing to consider is your knowledge of Bitcoin and cryptocurrencies. Do you fully understand how BTC works and the risks involved?
- The fifth factor is the price. Is the current price attractive compared to where you think bitcoin will be in the future?

## Conclusion

So, is now the time to buy? Only you know the answer to that.

Of course, there's no guarantee that BTC prices will rebound or that the current dip is a good opportunity to buy.

However, if you have faith in the long-term potential of Bitcoin, then buying during a dip can help you towards better returns.


Is the Bitcoin Dip Over?

It's been a rough few days in the cryptocurrency world, with [BTC falling below $20,000](https://www.ibtimes.com/crypto-july-12-bitcoin-drops-below-20000-market-turns-red-3570356) and the market turning red.

After a 2.89 percent dip in BTC in the last 24 hours, the cryptocurrency market opened on a gloomy note on Tuesday. At 12:17 a.m. Eastern Time, one BTC stood at $19,958, according to data from CoinMarketCap (CMC).

## Ethereum falls 5.6%: Predicts a return of $2789.81 by the end of July

The second-largest cryptocurrency, Ether (ETH), fell 5.6% the previous day and was trading at $1,088 at 12:17 a.m. Eastern Time (ET). Despite the recent drop, the median estimate tool provided by CMC, in which 32,022 individuals participated, predicts that BTC will recapture $35,143.87 by the end of July. For Ether, the same feature, which received 11,849 votes, predicts a return of $2,789.81 by the end of July.

## BTC Expected to Grow

BTC is expected to grow to $24,648.70 by August 1st, according to WalletInvestor, while DigitalCoinPrice predicts that BTC will trade at $28,089.80 on average in August. According to BitcoinWisdom's annual estimate, BTC will conclude the year in the $27,989 range. Solana (SOL), Dogecoin (DOGE), Near Protocol (NEAR), and Cosmos (COS) were the largest losers today (ATOM). There was a 4.99% drop in these tokens, followed by 5.42 percent, 4.46 percent, and 5.01 percent.
 
These coins cost $33.77, $0.6242, $3.28, and $8.27 at 12:33 a.m. ET. Polygon (MATIC) went bullish with a 4% price increase in the same period, while Uniswap (UNI) suffered the most with a decline of over 9%. At 12:35 a.m., these tokens were worth $5.4 and $0.5816, respectively.

The Bitcoin crash continues, with the cryptocurrency falling below $20,000. Ethereum is also down, although not as much as BTC. The market is overall red, with many coins losing value. BTC is expected to grow in the future, but it remains to be seen how long the current Bitcoin crash will last.

For more  crypto coin and token news go to [Latest Moni](/news).


Bitcoin crash continues below $20,000

Altcoins on the Rise to be showing signs of recovery, with Bitcoin up again by 7%. Its weekly gains have been around 13%. If the trend persists, it might make the highest gains in the last nine months, i.e., since October 2021.

This will be welcome news for cryptocurrency investors who have been waiting for the green shoots of recovery in the markets.

As of 8 July 2022, the price of Bitcoin is close to $22K ($21,780.04) as per [CoinMarketCap](https://coinmarketcap.com/currencies/bitcoin/). Moreover, the global cryptocurrency market cap today is around $960.69 billion. There has been an overall 5% surge in the global market cap.

In addition, the recent reassurance by the US Federal Reserve regarding recession has positively impacted both traditional and crypto markets. Consumer confidence has increased, and BTC's fear and greed index has increased to about 20 points.

## Altcoins on the Rise

Altcoins are also making significant gains as the overall crypto market is turning green. Ether, the second-largest cryptocurrency by market cap, has seen a 5% surge. However, the main reason behind its rise is the successful [Ethereum Sepolia Testnet merger](/news/article/ethereum-testnet-success).

Moreover, Litecoin (LTC) is also seeing a positive rally as its price has surged to $51.90 with an over 3% increase. The Binance Coin has been up by 7% in the last week and is trading at around $237. Meanwhile, Dogecoin and Shiba Inu also made notable gains. 

## Bitcoin Up Again

With Bitcoin  increasing in value again, we must ask, is it the end of the macro downward trend? That's what investors are hoping for.

Nevertheless, crypto analysts suggest that a small surge and the downward trend will likely continue. [@Roman_Trading](https://twitter.com/Roman_Trading/status/1545064421122269184/photo/1) explains that the hike follows similar patterns of the past eight months.

![wasay.webp](https://s3.eu-west-2.amazonaws.com/prod-monitalks-media/wasay_c446773d29.webp)
 
Another analyst, @gilbertocrypto1, observes that this Bitcoin surge could be bullish if the price crosses the $23K mark. However, as of now, the overall trend is still downward.



Crypto Market Turns Green: Bitcoin Up, Altcoins Making Significant Gains Too

Another victim of the cryptocurrency crisis is [Voyager Digital]( https://www.investvoyager.com/), which has filed for bankruptcy protection in the United States. Chapter 11 bankruptcy was filed late Tuesday in federal court in New York after the Toronto-listed broker and lender suffered losses of more than $650 million on a loan to the collapsed crypto investor Three Arrows Capital.

Just over a week after it had ceased trade and barred consumers from retrieving their money, Voyager went belly up. Known for its aggressive bets on rising crypto values, Three Arrows, based in Singapore, borrowed extensively from major industry players to increase their market wagers, leaving it seriously underwater as digital token prices collapsed. About 70 percent of top cryptocurrencies have lost value since their high in late 2017.

Despite a rescue loan from Alameda Research, the trading firm managed by FTX founder Sam Bankman-Fried, the company went insolvent last month. According to the bankruptcy filings, Voyager had pulled down the maximum $75 million permitted in a 30-day period, making Alameda its largest unsecured creditor.

## Bear market continues to take its toll on crypto lending platforms

Voyager's Chapter 11 petition is an attempt to shield the company from lawsuits while it restructures. According to the statement, the corporation has more than 100,000 creditors and between $1bn and $10bn in liabilities.

According to the documents, it owes over $1 million to Google, with its other top unsecured creditors being consumers. On top of that, Voyager said it had $110 million in cash and "owned crypto assets" on hand, as well as $1.3 billion worth of crypto assets on its platform.

A combination of crypto assets, the proceeds from Three Arrows' bankruptcy, shares in the company when it re-emerges from insolvency, and "Voyager tokens" will be used to reimburse clients, subject to court clearance.

A number of cryptocurrency-related businesses, including Voyager, have been affected by the downturn in the crypto markets. Voyager has announced that it will be suspending customer withdrawals and that its funds are held in an omnibus account at Metropolitan Commercial Bank.

Although customers' funds are insured by the FDIC, Voyager has cited the prolonged volatility in the markets as the reason for its decision. 

Other crypto lending platforms, such as Celsius and BlockFi, have also been affected by the market downturn and have suspended customer withdrawals. [FTX]( /news/article/ftx-uk)has provided rescue financing to BlockFi, which gives BlockFi the opportunity to acquire Three Arrows.  For more developments on the crypto news go to Latest Moni.


 Crypto lending platform Voyager files for bankruptcy protection

This is the wake-up call the bitcoin market has been waiting for. The next few hours will reveal if this is enough to stabilise the price, but there are still many uncertainties surrounding the financial viability of many crypto projects and businesses.
 
On June 19, one of the world's most influential people, Elon Musk, CEO of Tesla Inc., publicly supported the cryptocurrency business and the meme coin [Dogecoin](/coins/doge) in particular. On June 19, Elon Musk tweeted to his almost 99 million followers, "I will continue to support Dogecoin."
After that, a user on an exchange told Musk that if he truly supported Dogecoin, he should buy it. When asked if he was buying the dip, Musk replied, "I am."

## Prices are on the rise again

In the wake of his tweet, the cryptocurrency market saw an immediate surge in trust in cryptocurrencies and a flurry of inquiries regarding the long-term viability of numerous projects and businesses.

Data firm [CoinGecko](https://www.coingecko.com/) reports that Dogecoin, which was trading at $0.052307 per minute before Musk's post, is now trading at $0.058037 per minute, an 8 percent increase. They were followed closely by other coins' values. At $19,735.89 as of this writing, Bitcoin is up 4.4 percent in the last hour, making it the most popular cryptocurrency.

Shortly before Elon Musk's tweet, Bitcoin had fallen to a low of $17,677.43 before rising to a high of $18,290.75. Market capitalization leader Ether has gained 6.5% in the last hour to $1,058.60. Last week, Ethereum's native token was trading at $881, its lowest since 2021.
Just over 55% of the crypto market value is held by Ether and Bitcoin, and this fluctuates based on pricing. In the last hour, the total cryptocurrency market value increased by 3.7% to $972 billion.

After a spate of losses, crypto investors appear to be taking a break. Bitcoin's value has dropped by 30.1 percent, while Ethereum's value has dropped by 30.8 percent in the last seven days. 

 


Elon Musk claims to be buying the Bitcoin dip

Recent Coinbase [news about lay-offs](https://edition.cnn.com/2022/06/14/investing/coinbase-layoffs-bitcoin-crypto/index.html) came as no surprise and confirmed the fact that even the most prominent players can go through a panic attack enhanced by the current happenings within the cryptocurrency industry.

Brian Armstrong, the CEO of the cryptocurrency exchange Coinbase, confirmed laying off over 1,000 employees, warning of an imminent recession and “crypto winter”. 
In his note, Armstrong confirmed the company went on an unnecessary hiring spree during the recent price boom in this sector. 

“We grew too quickly. While we tried our best to get this just right, in this case it is now clear to me that we over-hired,” he admitted.

Armstrong also asserted he did hold numerous talks with the company’s management during the last few days and that they decided that laying off was the only possible decision. 

“We appear to be entering a recession after a 10+ year economic boom. A recession could lead to another crypto winter and could last for an extended period,” Armstrong wrote in the note to employees, adding that due to quadruple growth in the last 18 months, the company’s employee costs became “too high" to manage this uncertain market effectively.

Laid-off employees were promised a minimum of 14 weeks of compensation, four months of health insurance, including four months of mental health support, and access to Talent Hub, where they can access other open positions at other companies.

The situation escalated after the now-infamous digital lending platform [Celsius Network halted all of its operations](/news/article/celsius-crypto-freezes-withdrawals), including withdrawals, swaps, and transfers.
According to the last information, Celsius reportedly hired restructuring lawyers to advise on possible solutions to its bumpy financial situation.

## Other Crypto Companies Struggle

During the last few days, some other companies within the industry also have resorted to layoffs. One of the biggest exchanges Gemini laid around 10% of its workforce earlier in June, while banking app Curve fired around 100 employees after it reported an operating loss of £37.9 million. Cryptocurrency exchange and wallet BlockFi also confirmed firing approximately 20% of its workforce due to “the challenging market environment”.

On the other hand, Binance CEO Changpeng Zhao stated a potential forthcoming crisis could actually be good for business.

“It’s not the first time we’ve gone through a crypto winter. If we are in a crypto winter, it would be my third and Binance's second. So it's not the first time we’ve been through this,” CZ said.

He added that his company plans to hire more people since “during bull markets, everyone is starting their own projects, and everyone is getting paid a ridiculous amount of compensation. Now the markets are more balanced, so top talents are available, and we want to hire them,” he concluded.

Coinbase, which went public last year with share prices hovering around the $350 mark, has lost its momentum and was trading at nearly $49 per share pre-market at the time of writing.


Coinbase News: Over 1,000 Employees Laid Off

## Bullish or Gripped by Fear? A Guide to the Crypto Fear and Greed Index

Are you feeling confident or fearful when it comes to crypto investments? If you're unsure, don't worry - you're not alone. Sometimes, it's hard to predict whether the market is headed for bullish or bearish territory. That's where the [crypto Fear and Greed index ](https://edition.cnn.com/markets/fear-and-greed) comes in. This guide is all about this important market indicator.

## What is the Fear and Greed Index and How is it Calculated?

The crypto Fear and Greed Index was created to help crypto investors make better decisions. It does this by taking into account six different factors: volatility, social media, trends, Google search data, market momentum, and analyst ratings. Together, these factors give a good overview of how the market feels.
A high index value means that the market feels greed, while a low index value means that the market is feeling fear. The index is updated daily and can be a helpful tool for crypto investors who want to stay up-to-date with the latest market sentiment.

## How Does the Fear and Greed Index Fluctuate with the Market Conditions?

The Fear and Greed Index is a much-used tool for measuring market conditions. The index fluctuates between 0 and 100, with a reading of 0 indicating extreme fear and a reading of 100 displaying extreme greed. Readings below 20 are considered to be indicative of a bear market, while readings above 80 indicate a bull market.
The crypto Fear and Greed Index is of use to crypto investors. It can help them gauge market conditions and make informed investment decisions.

## What are Some Key Takeaways from the Fear and Greed Index Report?

The crypto Fear and Greed Index measures the level of fear and greed in the crypto market and provides valuable insights into market sentiment. The index is based on various factors, including social media activity, search engine data, and news stories. The index is updated daily, and investors can use it to gauge whether the market is feeling fear or greed.
Some of the key takeaways from the Fear and Greed Index report are that fear is currently dominating the market, and that investors are becoming increasingly worried about the future of crypto.
The index also shows that greed is slowly creeping back into the market, but it remains at fairly low levels. The report depicts a market that is cautious and fearful, but is gradually beginning to rebuild confidence.

## What is Causing Current Market Volatility and What Does it Mean for Investors?

The current market volatility is driven by several factors, including the crypto Fear and Greed Index. Crypto fear is the fear of missing out on the next big thing in the crypto world, and it's driving people to invest in new and unproven projects.
The greed index measures how much people are willing to pay for a given asset, and it's currently at an all-time high. This means that people are buying assets at unsustainable prices, and they're likely to pull out of the market as soon as they start seeing losses. This could lead to a sharp drop in prices, which would be bad news for investors.
Remember, though, that market volatility is normal and sharp downturns are often followed by periods of strong growth.
So, the long-term outlook for the market remains positive despite some likely bumps in the road.
The current market volatility is being caused, in part, by crypto fear. This is the fear of missing out on the next big crypto investment. As cryptocurrencies like Bitcoin have exploded in value, more and more people are looking to get in on the action. This has created a situation where there is more demand than supply, driving prices up.

However, this situation is not sustainable and, at some point, the market will correct itself. This could mean big losses for investors who are not prepared for it.
The other factor contributing to market volatility is the greed index. This is a measure of what investors are willing to pay for stocks relative to earnings.
When the greed index is high, investors are paying more for stocks than they are worth. This often happens before a market crash, as investors become overly optimistic about future growth. You can't truly predict the movements of the markets, but understanding the factors that contribute to volatility can help investors make better-informed decisions about when to buy and sell.
 
## Can Investors Use the Fear and Greed Index to Make Better Investment Decisions?

By taking into account the various indicators it is based on, the Fear and Greed Index provides a valuable measure of investor sentiment.
Investors can make use of the Fear and Greed Index to make better investment decisions. When the index is in "fear" mode, it may be a good time to buy crypto assets, as prices are likely to be low. Conversely, it may be a good time to sell when the index is in "greed" mode, as prices are likely to be high. Of course, no single tool can provide all the information necessary to make informed investment decisions, but the Fear and Greed Index can be a useful tool for crypto investors.
Hence, the crypto Fear and Greed Index is a helpful tool for crypto investors. It measures the market sentiment by taking account of news coverage, social media activity, and trading activity. By tracking these indicators, the index can help investors make better-informed decisions. For example, if the index shows that the market feels fearful, this may be a good time to buy. That is because prices are likely to increase when fear subsides.
Similarly, if the index indicates that the market is in a state of greed, this may be a good time to sell. That is because the index suggests that prices are likely to fall when greed recedes. While the index is not perfect, it can be a helpful tool for crypto investors who want to take advantage of market cycles.

## Other Factors Investors You Should Consider

When it comes to crypto investments, investors should consider a few factors. The first is the crypto Fear and Greed Index.
A second is the amount of institutional money flowing into the crypto market.
While crypto-assets are still largely unregulated, some big investors are beginning to take notice. The increasing institutional interest could help drive up prices in the long run.
Therefore, crypto investments are notoriously volatile, and investors should be aware of the associated risks before making any crypto investments.
Crypto investments should be considered in the context of a broader portfolio. Because they are so volatile, crypto-assets should not make up the entirety of an investment portfolio. It can offer the potential for high returns to those with risk tolerance.

## Conclusion and Final Thoughts

The crypto Fear and Greed Index can prove itself to be a valuable tool for crypto investors. It takes into account various indicators to provide a measure of investor sentiment. By tracking the index, investors can make better investment decisions.
When the index is in "fear" mode, it may be a good time to buy crypto assets, as prices are likely to be low. Similarly, when the index is in "greed" mode, it may be a good time to sell crypto assets, as prices are likely to be high.

However, crypto investments are notoriously volatile and risky. As such, investors should only allocate a small portion of their overall portfolio to crypto assets.


Crypto Fear and Greed Index: Bulls or Bears? 

Will the crypto market recover after crashing down in 2022? This article addresses the crucial topic that most people want to know. We also discuss when to expect bull-run crypto again. Let's start our analysis!
The current crypto market situation is exactly the opposite of what heights it reached in 2021. [Bitcoin](/coins/btc) lost more than 60% of its price value from last year. Meanwhile, Ethereum, Binance Coin, Litecoin, Cardano, Doge, and others are red.

Besides, the Terra Luna crash has left a dreadful impact on the market. As a rising coin, Luna has flattened, and the stablecoin, UST, lost its peg. It has shaken the investor's trust in the crypto market. Overall, the crypto market is in a tailspin, with everyone having the same existential question: will crypto recover anytime soon?

To clarify the doubts, here are some insights into current crypto trends.

## Why is the Crypto Market Down Today?

Several social factors have influenced the recent crisis in the crypto market. Last year, it was Tesla’s pull-out from accepting payments in Bitcoins and China’s sanctions on crypto. But today, it is because of the Russia-Ukraine war and the looming fear of global inflation. Moreover, the debacle of the Terra Luna blockchain has also played its part in this downward trend.

Last year, despite the two happenings, various cryptocurrencies saw their all-time highs. But today, it isn't the case, as the investors' confidence in the market has sunk. Luna's crash resulted in the de-pegging of the stablecoin TerraUSD (UST), which was considered a safe bet for trading.

Besides, the fear of recession has kept people from investing in digital assets. [The inflation in the UK has reached a 40-year high](https://www.bbc.com/news/business-12196322) rate of 9% and is expected to be 10% in the coming months. Fuel and gas prices are also surging worldwide. In this scenario, people are more inclined to keep liquid assets or other risk-free assets.
 
## When Will the Crypto Market Go Bull Run?

The crypto predictions today depict quite a gloomy picture of the market. But, the one thing we can learn from the previous crypto market crashes is that they always result in some innovations in crypto and are part of the cleansing process of the market.

The cleansing of the system usually happens when it hits bottom. So, the question should not be ‘will crypto recover?’ Instead, it should be ‘when will crypto bull run again?’ To figure it out, you must watch Bitcoin closely, as its value directly affects other altcoins.

As of May 27, Bitcoin stands at $29,007.14 and is down by 2.25%. Since the start of the year, it has lost around 60% of its value. Some analysts like Tony Nyman from Informa Global Markets suggest that Bitcoin might fall under the $20,000 mark.

On the other hand, another analyst, Michaël van de Poppe, hoped that if Bitcoin showed resistance at $29.4K, it might make gains and reach the $32.8K mark. But, it is quite unlikely as Bitcoin has already fallen that mark.
According to some analysts, it might go down to as low as $8K by the end of 2022. Therefore, before we see a significant recovery, the crypto market will go through more bleeding to reach the bottom. Nevertheless, it is crucial to understand that the crypto market, like any other market, operates on the supply-demand, and its recovery will depend on it.

## Road Towards Sustainable Stability

The previous crypto market crashes show that there can be an increase in market capitalisation after the continuous downward trend. In addition, for the system’s stability, there is room for certain technological innovations that can overcome the existing drawbacks of the system.

For instance, the January 2018 crypto crash resulted in shaping the DeFi system in the crypto world. In the same way, the current market crash can help us establish a secure blockchain for stable coins, which will resolve the issue of high volatility in the market.

It is exactly what the Chief Marketing Officer of Coinbase, Kate Rouch, has pointed out in a recent blog.

So, as we observed the failure of a stable coin, the current downward trend might bring up better and more secure projects. Moreover, when the market hits bottom, it can naturally wipe out the Ponzi scheme-based projects that run on faulty algorithms.

A market collapse is also a good reminder for crypto investors to educate themselves about the current trends and make informed decisions. As an investor in the current climate, you should take a step backwards and study the blockchain systems before investing money in any.

After all, it gives you another crucial lesson not putting all your eggs in one basket. You must not risk all your life investments on one single token. Instead, it is better to accumulate and trade side by side.


Will Crypto Recover? When to Expect a Bull Run

Since 2022 started, we have seen signs of a possible cryptocurrency market crash.

The crypto market is highly unpredictable. [Bitcoin](/coins/btc) and other prominent cryptocurrencies, including [Ethereum](/coins/eth), BNB, Luna, XRP, Solana, Cardano, Avalanche, and [Dogecoin](/coins/doge), have experienced falls in value, brushing around $200 billion from the aggregate crypto market.

Five months back, Bitcoin (BTC), the largest cryptocurrency with a market value of $758 billion, reached its all-time high of $69,000, and its [market is currently 42% down.](https://coinmarketcap.com/)

## The question remains the same: is a cryptocurrency crash inevitable?

To understand the question, we need to study the reasons behind the market crash. Let's go through some of the prominent reasons behind a cryptocurrency market crash.

1.   A Dearth of Liquidity in Cryptocurrency Markets
The most notable concern the crypto markets encounter is when leveraged investors liquidate a considerable share of their investments due to the across-the-board liquidity of the markets. Unlike the stock market, there aren't consistently a bunch of buyers waiting to grab up unloaded coins. This is a reason why crashes tend to occur more frequently.

2.   Crypto Security Violations are Driving Fear
Blockchain and network security are additional factors resulting in a crypto crash. This crash is likely to unfold similar to government actors' regulatory disruptions.

For instance, if it seemed that there was a security fault in Bitcoin, that would impact the desire to mine it, affecting the hash rate and all-around price.

And unlike stocks, which are backed by underlying assets, the value of most cryptocurrencies is operated purely by investor view.
Morningstar Investment Management global chief investment officer Dan Kemp said the challenge facing holders is finding cryptocurrencies with 'limited supply and enduring appeal’.

3.   Uncertainty
Uncertainty among investors is driven by many factors, for example Covid-19 and the ongoing war in Ukraine. They aren't sure whether the cryptocurrency market is stable or volatile. Lack of liquidity in the market generates fear among investors. They are likely to liquidate their assets as per the unpredictable situation. This results in an overflow of coins with a limited amount of buyers present in the market, driving a market crash. This again counts as one of the prominent reasons behind the crash.

4.   Crypto Influencers are Driving Volatility
When it comes to sentiment, cryptocurrency investors ought to remember that crypto promoters and key influencers can tweet and generate an inflow of capital. We've seen this occur with Elon Musk's backing of Dogecoin.

Tweeting can have an adverse effect too. The reason behind this is the investor sentiment and crypto's shortage of liquidity. The only solution to the problem is to study the market trend and analyze the technical team and their robust strategy to boost the coin performance.

Answering the central question, no, the cryptocurrency market crash is not inevitable. With the influx of serious investments from institutional investors and advancements in crypto projects, we expect the blockchain industry will mature with time and earn trust from investors as WEB3.0 stands at the door. These crypto projects directly link to real-world applications, and when they go to the profitability section, we could expect the market would get more mature. 

The volatility could reduce to a certain level in the interest of the investors
 
 
 
 
 
 
 



Cryptocurrency Crash - Is It Inevitable?

So, what if there's a [crypto crash](https://www.investopedia.com/crypto-crash-what-investors-need-to-know-5272147) today? What would you do?

The crypto market is crashing again, and it seems to be here to stay this time. If you're one of those to have lost money in the crypto crash, don't worry! You're not alone.

Here, we will discuss some tips for staying afloat during a crypto market crash.

## Surviving the Painful Market

A down market is always a painful experience for any business. It's not a matter of if it happens; it's only a question of when. 

The sooner you adapt to the current market conditions, the faster you will be able to ride out the inevitable correction.

In the meantime, it's important to take a few steps to ensure that you can continue to operate profitably during times of stress. Here are ways to prepare for a crypto crash.

1.	Don't panic - remember that the market always goes up and down, and this is just a temporary dip.
2.	Do your research before buying any new coins - make sure you understand what you're investing in and why.
3.	Sell off any coins you don't need right now - you may not want to sell at a loss, but it's better to take a small hit now than to lose everything later.
4.	Keep your coins in a safe place - preferably in a wallet that you control, rather than an exchange.
5.	Don't invest more money than you can afford to lose - remember, this is still a high-risk investment.
6.	Try to stay calm and remember that crypto markets are notoriously volatile. Prices could rebound at any moment, so it's important not to panic and sell all of your assets at a loss.
7.	Keep an eye on the news - often, crypto crashes are caused by negative news stories or government regulations. If you can stay updated on the latest crypto news, you'll be better positioned to weather the storm.
8.	Diversify your portfolio - if all of your eggs are in one basket, you're bound to lose money when the market crashes. By diversifying your portfolio across different assets, you can minimise your losses and come out ahead in the long run.
9.	Stay positive - it's important to remember that this is just a temporary setback and that the market will eventually recover. By staying positive and keeping your head up, you'll be better positioned to weather the storm and come out ahead.

## Conclusion

In conclusion, It’s a good idea to diversify your portfolio. But as a crypto investor, you need to diversify more than just your portfolio. Diversification is a big word for something as basic as deciding which cryptocurrencies to invest in.

Don't invest in a specific market, which means avoiding falling in love with anyone's coin. That's why it's so important to diversify your holdings.
 
More [Business news](/news/category/crypto-business-news).
 



Crypto Crash Today? Ways to Ride it Out

The world’s most heavily capitalised digital asset, Bitcoin, celebrated its 13th birthday last week, but the cryptocurrency market’s mood has been far from “celebratory,” despite all that Bitcoin has achieved since it was launched in 2009.   January 8th marked the seventh-straight day in a row that the digital asset’s value trended lower – Not since 2018 has there been such a steady decline.

Last year, while crypto-enthusiasts were applauding the digital assets market for finally achieving “mainstream adoption,” a crucial inflection point, other cryptocurrency analysts were trying to warn investors that the fever pitch and accelerated values may trigger a late year sell-off.  They were right. 

How did we get here?  As Bitcoin slips toward the psychological floor of $40K, crypto-investors are anxiously looking for any credible news or trends to suggest that the current market sell-off could finally be ending. 

Let’s all take a collective breath as we consider some important facts.

First, the month of January _always_ seems to spook investors with sudden dips.  This historically creates a domino effect that chases the newer investors out of the market, and it appears that 2022 will be more of the same.  Yes, this sell-off has been especially disconcerting as Bitcoin has shed 10% of its value in the first ten days of 2022, but a closer look at the market players reveals some answers. 

If one considers the role the Federal Reserve has had to play in all this, especially their reaction to the pandemic, the sell-off becomes less of a mystery.  During the pandemic, the Fed was very lenient on the economy and even went so far as to inject over $4 trillion into the economy.  It was a move to support the global marketplace while the world’s employers struggled to find a way to stay in business with much of their workforce needing (or wanting) to work remotely.  Now, as the world’s economies begin to stabilize, the Fed is starting to give signals that it may be thinking about taking some new steps to minimize the rate of inflation - rates that are now at their highest level in forty years.

A simple review of the minutes from last week’s Federal Reserve meeting served to only further fan those flames.  Word began to spread across the media channels, and the rout was on. 

It’s also worth noting that most investors still categorize cryptocurrencies as “high risk” investments.  In so doing, the cryptocurrency market will continue to react with _sell orders_ whenever the Fed hints at tempering the market like it did last week.  So, the big question becomes, especially for the investors who piled into the market late last year, when does this carnage end? 

As of this weekend, Bitcoin was down 35% from the all-time high, but some influential players are sensing better days are ahead.  Are they correct?  The price of Bitcoin is continuing to edge closer to the $39,570 mark.  That’s approximately where Bitcoin’s price hit a floor in September 2021, before going on an upward tear.

In fact, a strategist from Bloomberg made comments earlier suggesting that Bitcoin could _outperform_ traditional stocks in 2022, especially if any moves are made by the Fed to raise interest rates.  The strategist stated: “Cryptos are tops among the risky and speculative. If risk assets decline, it helps the Fed’s inflation fight. Becoming a global reserve asset, Bitcoin may be a primary beneficiary in that scenario.”

Remember, the technology behind these digital assets is still very new to the mainstream public, and there was a lot of FOMO activity that took place in late 2021.  As the market cools, it is establishing a new baseline.  We’ve been here before.

Is it time to pick up some bargains?

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