The crypto fear and greed index uses social signals and trends to score the overall sentiment of the cryptocurrency market. 

Like all indexes, the fear and greed index crypto style builds its rating from various data sources to provide a single figure between 1 and 100. This metric is a popular tool in the arsenal used by cryptocurrency traders and investors looking to determine whether it is a good time to make their moves in the market. 

The index provides four categories depending on the score. These are: 

- 0-24 Extreme Fear (orange) 

- 25-49 Fear (amber/yellow) 

- 50-74 Greed (light green) 

- 75-100 Extreme Greed (green) 

As anyone who has invested or attempted to trade crypto will know, cryptocurrency is often subject to high levels of volatility. Emotions can get the better of investors. People often rush in to trade for fear of missing out (FOMO), getting greedy when prices ascend or panic selling when prices drop. 

Managing emotions is key to becoming a successful trader. The fear and greed index crypto assessment can be a helpful tool to accomplish that. 

By analysing available information, traders can remove emotion and make smarter decisions. When conditions are categorised as 'Extreme Fear', it is often a good time to buy. Conversely, when the indicator shows 'Extreme Greed', it is often a good time to sell. The[ indicator ](https://alternative.me/crypto/fear-and-greed-index/)is easy to find through a simple Google search or by accessing its [Twitter feed.](https://twitter.com/BitcoinFear) 

## Final score 

The index is calculated and managed by [Alternative.me](https://alternative.me/) and uses a range of sources to determine its score. Volatility, market momentum/volume, social media sentiment, market dominance, and trends are all used to help determine the final score. 

- Volatility – the rate of change between buy and sell pressure. A rise in the volatility rate usually signals the start of fear in the market. 

- Market momentum/volume – market momentum is used in conjunction with the rate of current volume. If volume begins to outpace the current momentum, then the market is becoming too greedy. 

- Social media sentiment – by using a tool like the Twitter Sentiment Analysis Tool, high interaction rates can be identified, and greedy behaviour can be avoided. 

- Market dominance – when Bitcoin dominance starts to rise, it is generally accepted that this signals that wise money is moving to the safer haven of the number one cryptocurrency. Conversely, when Bitcoin dominance begins to fall, this is seen as a good time to move your capital into more risk-on altcoins. 

- Trends – the fear and greed index crypto assessment uses data from Google Trends to calculate how many people are searching for cryptocurrency information. Terms such as 'Is Bitcoin a scam?' are viewed as bearish indicators, whereas 'What will the price of Bitcoin be in 2030?' are considered bullish. 

## Effectiveness 

The chart below shows how accurate and effective the fear and greed index crypto assessment can be. 

![histogram of world news](https://s3.eu-west-2.amazonaws.com/prod-monitalks-media/Screenshot_2023_05_02_at_09_10_45_4c10bab5ce.png)

As you can see, the index lives most of its time in the greed area and rarely drops into fear for more than a month. It also demonstrates how crypto sentiment closely correlates with the macroeconomic situation. 

The lowest level sentiment fell to was immediately after the first Covid impact in March 2020 as worldwide financial markets sold off to protect their investments. Little more than a year later, we saw the index reach its highest point in February 2021 and the beginning of the DeFi summer. 

This chart shows that although situations can change overnight, when the indicator shows greed or extreme greed, it tends to stay in that area for extended periods. Overall, I believe this chart shows that the general sentiment for crypto has been pretty healthy for the past two years. 

However, many investors view the fear and greed index as only a short-term indicator rather than a long-term analysis forecast. This is mainly due to its reliance on news events and short-term fluctuations. This probably explains why the tool is more popular among traders than long-term investors. 

## Emotions 

As mentioned above, anyone involved with crypto trading or investing will understand how volatile the market can be. Unless we are careful, we may become exposed to the dreaded emotional roller-coaster. 

Not much imagination is required to understand that this is not the best place to be. So, one of the more common questions people ask me is, how do we control our emotions when trading? 

The advice I will share is to always consider and reconsider before making any market moves. When you think that [the average price prediction for Bitcoin by 2030 is $500,000](https://www.cnbc.com/cryptoworld/?&qsearchterm=cryptocurrency), it becomes clear that this market still has plenty of room for upward movement. 

Therefore, I think long and slow moves are best, if any at all. However, here are some of the best ways I find to remove the emotion from your financial decision-making: 

Diversify – a diversified portfolio is often the best way to deal with the peaks and troughs of long-term investing, and it is no different with cryptocurrency. 

Dollar Cost Averaging (DCA) – dollar cost averaging will remove much of the strain associated with trying to time market tops and bottoms. This is one of the most powerful ways to remove emotion from the game. Just set up a recurring payment and focus on the long term. 

Be fearful when others are greedy – according to the 'Oracle of Omaha' Warren Buffet, it pays to be fearful when others are exhibiting greed and to be greedy when the market is full of fear. This is good advice, but in practice a lot harder to perfect than it might seem. 

As you can see, the fear and greed index is a handy tool that can greatly impact your trading and investing decisions. Used in conjunction with other technical analysis, it can radically change your investment decision-making. 

However, as with any form of investing, it is imperative that you conduct due diligence before making any financial decisions. 

fear and greed index on phone with blue background

Fear and Greed Crypto Index: Is It Effective?

The global cryptocurrency market experienced [a broad sell-off on Friday](https://coingape.com/markets/), the first time since a mid-January wave heralding bearish news that could overshadow crypto's recent 2023 uptrend. As the cumulative crypto market appeared to crash, the Ethereum price today dropped by a whopping 7.87% to trade at $1,400.

In what appears to be partly the result of the market's reaction surrounding the future of US-based crypto banks, the entire crypto market lost at least $60 billion in the past 24 hours, standing at $930 billion at the time of writing. Pundits are pointing at the demise of the crypto-friendly [Silvergate Bank](/news/article/silvergate-on-verge-of-collapse) ([a gap BCB Group is trying to plug](https://news.monitalks.io/news/article/bcb-group-acts-to-close-silvergate-gap)), a hawkish FED, and possibilities of government sale of Silk Road-related Bitcoin as among the reasons investors might have engaged in panic selling.

## Ethereum loses $1,500 support level

Bitcoin, the world's largest digital asset by market capitalization, wasn't spared the bloodbath, suffering a liquidation of $120 million over the last 24 hours, having shed a massive 8%. As for the world's second-largest crypto by market cap, Ethereum price today lost the $1,500 support level, trading at $1,414 with a market capitalization of $173.05 billion. The data showing a 58.60 increase in trade volume indicates decreased investor interest.   

Several events in the last few weeks have been cited as enough reason for investors to get into panic mode. First, there's been a stronger-than-expected inflation report calling into question the US's recent assertion about an ongoing disinflation trend. The FED itself didn't make things easier by acknowledging the same, even as its chair, [Jerome Powell](https://www.federalreserve.gov/newsevents/testimony/powell20230307a.htm), informed Congress that the central bank had its work cut out if it was going to reverse inflation back to its 2% target.    

## A somber alarm bell for the crypto trading markets

Moreover, the collapse last Wednesday of crypto-friendly lender Silvergate Bank and the US Department of Justice [moving 49,000 Bitcoin](https://twitter.com/PeckShieldAlert/status/1633331891347820544) it seized from Darknet marketplace Silk Road to a new Bitcoin address pointed to a possibility that the government could sell its sizeable cryptocurrency stash. The combination of all these factors is a somber alarm bell for the crypto trading markets only one week after the market experienced [$200 million liquidation](https://www.coinglass.com/LiquidationData) in minutes. 

The declining ETH price happens as Ethereum's developers plan to launch the Goerli testnet on or around 14 March, a tryout for the much anticipated [Shanghai Upgrade](/news/article/eth-shanghai-upgrade-postponed) that was pushed to sometime in April.


red image of hands holding ethereum coin on red background

Ethereum Price Today: 7% Fall 

## Silvergate Bank crisis sees crypto market tanking

[Silvergate Bank](/news/total-crypto-market-cap-takes-a-hit-amid-silvergate-bank-crisis), one of the leading institutions for innovative businesses in the cryptocurrency and financial technology (Fintech) industry, has seen its market value plunge by 60% in March, data from Yahoo Finance showed. 

Due to the bank’s standing as a key player in the on-and off-ramping of the cryptocurrency space, seeing its stock 'SI' trade in red has led to a huge sell-off in the cryptocurrency market. 

Overall, [approximately $70 billion](https://www.tradingview.com/chart/1okY2Hep/?symbol=CRYPTOCAP%3ATOTAL) has been wiped off the total market capitalization of the entire decentralized finance sector, with current metrics at around $984 billion after the industry soared above the $1 trillion mark on the opening day of March.

![tradingview graph of crypto market cap](https://s3.eu-west-2.amazonaws.com/prod-monitalks-media/Screenshot_2023_03_06_at_10_59_10_c20ecbacf6.webp)

 
While Bitcoin and Ethereum (ETH) always lead gains and losses, altcoins such as Klaytn (KLAY), Theta Network (THETA), Basic Attention Token (BAT), Zilliqa (ZIL), Optimism (OP), Lido DAO (LDO), Flow (FLOW), and the Sandbox (SAND) have seen double percentage losses in the past week.  

## Silvergate Bank's stock price went down after the SEC filing disappointment

On Wednesday, 1 March, the financial institution disclosed in a US Securities and Exchange Commission (SEC) [filing](https://d18rn0p25nwr6d.cloudfront.net/CIK-0001312109/14a9b861-b10a-458d-8f9d-44f0d18bc75e.pdf) that its annual 10-K report will not be submitted in time. 

The [10-K](investopedia.com/terms/1/10-k.asp) is an annual report filed by publicly-traded companies about their financial performance within a 365-day period. It covers the organization's history, structure, executive compensation, financial statements, and earnings per share (EPS).


Not being able to fulfil this requirement raised eyebrows among the company's various stakeholders after the firm said it would be examining its ability to continue operating.
In addition, the bank said it is re-evaluating its business strategies under the [regulatory and business challenges](/news/article/is-crypto-regulated-across-the-globe) it faces.   

## Many crypto firms are moving away from the bank 

In light of the company's stock price decrease, cryptocurrencyy heavyweights such as Galaxy Digital and Coinbase Global [announced](https://www.cnbc.com/2023/03/03/coinbase-galaxy-digital-abandon-silvergate-after-bank-warns-about-its-viability.html) on Thursday, 2 March, that they have dropped Silvergate as their banking partner. 

Aside from these powerhouses in the [crypto](/news/article/dash-cryptocurrency-price-prediction) economy, the European cryptocurrency exchange Bitstamp, CBOE’s digital asset exchange, and stablecoin issuers Circle and Paxos have also discontinued their partnerships with the financial institution.

Despite the crypto market being down by $70 billion in March, the entire industry has been on a rebound in 2023 with a spike of 30% year-to-date (YTD) from about $756 billion on 1 January to more than $980 billion on 6 March.


red image of silvergate bank with crypto falling down

Silvergate Bank Crisis Sees Crypto Market Tank

Kiba Inu is not just a meme coin, as a first glance may lead the reader to suspect. Instead, it is a full-service blockchain project that features a decentralised exchange, a governance token (KIBA), and various other tools found within its network.

The project claims that it is committed to restoring the integrity of meme coins by building projects that add value to the ecosystem. 

This is a lofty idea, as several meme coins which spawned after the initial success of Shiba Inu were mere pump-and-dump projects that only made money for the creators and not for members of the ecosystem at large.

This project has an opportunity to benefit from some of the recent dysfunction in the crypto market created by the [collapse of centralised exchange FTX](/news/article/ftx-collapse-blockfi-suspend-withdrawals) and other lending projects that had hefty leveraged exposure to the exchange. Some have argued that the collapse of FTX has damaged confidence in centralised crypto exchanges. But this event inadvertently created a window of new opportunities for decentralised exchanges to grow their market. This is an opportunity that the Kiba Inu project can develop if it strikes the right chord with the market.

## Kiba Inu's story so far

As with several other meme coins, Kiba Inu debuted on several centralised and decentralised exchanges to much fanfare in May 2022. However, the crypto market was already in a full downtrend, and aside from the considerable surge seen on the listing day, the price of the token hit rock bottom soon after.

So hard was its fall that it met lows that took out listing lows. After hitting its lowest point in December, a month in which the token shed a further 33% of its November 2022 value, the token has benefitted from the brief resurgence seen in January 2023. The 75% gain seen so far has eclipsed the December 2022 highs, and the technical pattern on the long-term charts suggests that 2023 could be the year a gradual recovery starts.

## Where can you buy Kiba Inu tokens?

KIBA tokens are available on several centralised and decentralised exchanges. Decentralised exchanges that offer KIBA as a swap-enabled token include PancakeSwap, UniSwap, and Kiba Inu's DEX, Kiba Swap. You may also purchase the tokens using fiat currency on Flooz Trade or Fiatom. Gate.io, Hotbit, Digifinex, and Bitrue are centralised exchanges where you can purchase KIBA using Bitcoin, Ethereum, and stablecoins such as USDT or USDC. The Kiba Swap exchange is the primary decentralised exchange for obtaining the KIBA tokens.

## What activities are performed on Kiba Swap?

[Kiba Swap](https://kibainu.com/#/swap) is a decentralised exchange (DEX) that features a traditional swap exchange, a trade portal that offers traders the chance to trade with limit prices, and a cross-chain bridge that allows the transfer of tokens between different blockchain networks. Kiba Swap is a non-custodial exchange, meaning that users keep their tokens in wallets that are not warehoused on the exchange itself.

a) Swap portal
This traditional DEX allows owners of specific tokens to swap them for other tokens that share the same network. The standard base tokens on Kiba Swap are KIBA, Ethereum, USDC, USDT, DAI, WBTC, and WETH. These can be swapped with 1inch, AAVE, APE, AUDIO, AXS, BAND, CRV (Curve DAO), GALA, KNC, and other external tokens. You can also add external tokens by managing your token lists.

b) Trade portal
Kiba Swap's limit order trade portal offers crypto owners the opportunity to buy or sell their favourite cryptos at beneficial prices that are different from the market price. For instance, those selling their tokens can choose to do so at a higher price than the market price to get a better deal and potentially make more profits. Those who want to buy tokens can set lower prices for their entries to secure better pricing.

c) Crosschain bridge
What can you do with the cross-chain bridge? Various stablecoins (USDC, USDT, LUSD, DAI), FRAX, ETH, and STG can be moved from their parent networks to other networks. Featured networks include Ethereum, Arbitrum, Fantom, Avalanche, Polygon, and the Binance Chain. Kiba Swap currently does not have an active liquidity pool for crypto lending.

## Conclusion

The performance of the KIBA token in 2023 and beyond will be tied directly to the degree of success the Kiba Inu team has in onboarding new clients who will be active users of its Kiba Swap decentralised exchange.

The recent gains seen in the KIBA/USDT and other KIBA pairs are more of a market response to Bitcoin's latest move toward the $22,000 mark. If the KIBA token is to recover its 2022 listing highs, Kiba Swap needs to capture a significant chunk of the DEX market share currently controlled by Uniswap and PancakeSwap.


Kiba Inu: The Long Road to Recovery 

## Wells Fargo: Bear market rally ends

Chris Harvey of Wells Fargo & Co has declared the end of[ the bear market rally](https://www.marketwatch.com/story/a-different-animal-the-bear-market-is-over-but-that-doesnt-unleash-bulls-to-send-stocks-on-a-2023-tear-according-to-wells-fargo-9e7fb65a) that wiped out up to $12 trillion in US equity values. 

According to the equity analyst, the recent pullback in investment-grade corporate bond yields does not align with the prevailing fear that the S&P 500 will renew a selloff and reach its October lows. Additionally, healthy balance sheets at the corporate and consumer levels indicate a subdued level of systemic risk, indicating that the catalyst for an extended market downturn is largely absent.
Harvey predicts that downtrends often end with sharp tightenings and healthy issuance, similar to what we have experienced over the past few months.

In a note on Monday, he stated that when downtrends progress to the "next level," we typically see spreads widen, not tighten, as we have observed today. He further supports this view on systemic risk by pointing to IG spreads.

## Wells Fargo report declares bear market rally ends

In a recent research note, Wells Fargo, America's fourth-largest bank, announced that the downtrend is over, but there is no uptrend in store. The report acknowledged a [new market trend](/news/article/bull-and-bear-markets) that is not explicitly bullish but indicates that the bear market is behind us.

![wells fargo chart of cryptocurrency market](https://s3.eu-west-2.amazonaws.com/prod-monitalks-media/wells_Fargo_382710a917.webp)

  
"The [bear market](/news/article/crypto-bear-market-survival) is over, but it is not the great regulation," stated Harvey, adding he sees neither a bear nor a bull market, "just a market". While investors may expect a sharp reversal, the report predicts a "giveback" that is not likely to be immediate.

Wells Fargo's current analysis suggests that mid-cap growth stocks present the best risk/reward potential. The report recommends pharmaceutical equities as a preferred defensive play.
Furthermore, the S&P 500 has increased by 7% in 2023, rising to nearly 4,092 in Monday trading. This number is close to Wells Fargo's S&P 500 price target of 4,200 for the year.



blue image of bears and bitcoins on rally track

Bear Market Rally Over Says Wells Fargo 

Bitcoin has been the biggest currency in the crypto industry for years. Phenomenal as it is, BTC has seen its fair share of ups and downs, especially in 2022. Now investors are asking, 'will [Bitcoin](/news/article/bitcoin-investors-turn-to-self-custody) go back up in value?'.

For the past few years, Bitcoin has been on a rollercoaster ride. From its all-time high of around $68,000 in November 2021 to its current price of $18,143 (12 January), the value of this digital currency has been highly volatile. It lost more than 70% of its value between November and mid-December. This is why investors wonder, 'will Bitcoin go back up?'.

[Predicting the future is difficult](/news/article/bitcoin-volatility-price-drops). A few factors, nevertheless, can help investors understand more about the likely course of Bitcoin's price in the future.

## What is Bitcoin

Bitcoin was the first cryptocurrency. In 2009, it was created by an unknown person with the assumed name of Satoshi Nakamoto.

It is a revolutionary technology used as an electronic cash system that has already changed the world. Investors refer to it as digital gold since it is a currency that stores value.

## Will Bitcoin go back up - The influencing factors

What factors affect its price? Knowing this will help us to understand why the BTC price behaves as it does and to unravel the "will Bitcoin go back up" question.

1.   Adoption of cryptocurrency by the masses
The widespread acceptance of cryptocurrencies is the primary factor determining Bitcoin's future. Cryptocurrency will become more in demand if more people want to use it. 

As a result, the cost of this cryptocurrency will increase.

Currently, there is still a relatively small market for the currency. This indicates a limited supply of this first-mover cryptocurrency and a limited pool of buyers. This scenario directly means that the price of the same may decrease if there is a decline in demand.

However, the market for Bitcoin is expanding, which is good news. The interest in it is growing, and more businesses accept it as a form of payment. This can only portend a bright and successful future. So, yes, Bitcoin will go back up again in the future.

2.   Regulatory environment of cryptocurrency
The regulatory environment of cryptocurrency is significant. 

If governments regulate the cryptocurrency market and adopt a more favorable stance towards Bitcoin, this will create more stability and trust, leading to higher prices.

However, some things potentially cause the price of this digital currency to go down significantly. Unfavorable government regulations have a negative impact on the price. 

For instance, governments around the world have been hesitant to embrace it. One must wonder, will Bitcoin go back up if governments pass legislation restricting or prohibiting people from buying or selling the currency? This will only cause its price to drop notably.

3.   Development of the underlying technology
For Bitcoin and other cryptocurrencies to thrive, developing underlying technology is fundamental. If the technology behind it is improved, this will lead to more efficient and secure transactions, which will increase the demand for the currency and cause the price to go up.

At the moment, this online currency is still relatively new, and many don't understand it. If the public becomes less trusting of the technology, it will eventually drive people to sell off their investment, driving the price down.

However, at the moment, Bitcoin's underlying technology is constantly evolving. This indicates that the technology is improving in terms of efficiency and security. As more people develop confidence in the technology, it will result in an increase in its value.

4.   Usage as a medium of exchange
The usage of this cryptocurrency as a medium of exchange is another aspect that is influencing consumer demand. A growing number of online and offline retailers accept Bitcoin as a form of payment. As a result, more individuals might begin utilizing it to make purchases of goods and services, which could boost demand and raise the currency's price.

5.   Usage as a store of value
The usage of Bitcoin as a store of value is another aspect that affects its price. Some investors purchase it as a hedge against inflation and other economic risks because they view it as a safe haven asset, similar to gold. The demand for Bitcoin might rise if this pattern persists, consequently raising the value of the [digital currency](/news/article/digital-currency-group).

6.   Overall state of the world economy
The overall health of the global economy will also impact the price of Bitcoin. People may be more inclined to invest in it, thus increasing its value. Nonetheless, this is only possible if the economy is strong and there is little inflation.

On the other hand, consumers may be less likely to invest in the currency if the economy is struggling and there is excessive inflation, which could result in a decline in its price.

7.   Positive news on Bitcoin
Last but not least, the news surrounding Bitcoin is vital. If there is positive news surrounding it or its technology, then this could lead to more investor interest and higher prices.

If there is negative news surrounding this digital currency or its technology, then this could lead to a decrease in investor interest and lower prices.

Having said that, will Bitcoin go back up again? Positive and optimistic news on this subject will greatly help bring things back on track.

## When Bitcoin prices have dropped, here is what to do

Undoubtedly, a large drop in digital currency prices, especially Bitcoin, instills great fear in people. At this moment, the cryptocurrency world is under immense pressure, especially due to the tightening US Federal Reserve monetary policy. The change has affected Bitcoin and other currencies like [XRP](/news/article/xrp-lawsuit-update), Ethereum, and Cardano. Global stocks have seen a drop in prices as well.

So, will Bitcoin go back up? Yes, hopefully. And this is what [you should do](https://zipmex.com/learn/bitcoin-price-prediction/#:~:text=Compared%20to%20the%20previous%20year%2C%20Bitcoin%20price%20tends%20to%20significantly,2024%2C%20along%20with%20other%20cryptocurrency.) while waiting.

1.   Avoid selling out of panic and maintain your position
Always remain calm, take your time to investigate, and consider the situation. Speak with an expert before purchasing or selling your digital currency if you find some concepts difficult to understand. Your investment portfolio, which you have worked so hard to build, will be badly impacted by a hasty sale or acquisition of Bitcoin. 

It could result in significant losses that take you a long time to recover from, or you never recover at all.

2.   Analyze the current situation
Always ask yourself, "What is causing the prices to drop?". Are there significant happenings in the world that are affecting these prices? Strive to keep up-to-date with the current state of affairs globally and especially so in cryptocurrency. You can achieve this by watching news and programs on TV, reading newspapers, or visiting relevant websites.

3.   Take a long-term perspective
If you're investing in Bitcoin, it's important to remember that it's a long-term investment and that market fluctuations are normal. Don't panic if the price drops, but as an investor, consider it an opportunity to buy more at a lower price. 

However, be careful on this one and engage an expert to be on the safer side.

4.   Diversify your investments
[Diversifying your investments](https://www.bankrate.com/investing/bitcoin-and-crypto-crash-what-investors-should-do/) is important, so if Bitcoin's price drops, your portfolio isn't overly exposed to the cryptocurrency. To balance your investments, consider investing in other cryptocurrencies, stocks, or even gold.

5.   Take into account dollar-cost averaging
With this method, an investor purchases securities on a recurring basis using a portion of the entire money to be invested. By doing this, the investors lessen the effect of volatility on their overall buy.

6.   Be hopeful
That's right. You have to be optimistic that things will get better eventually. If the big question still in your mind is, "Will Bitcoin go back up?", then the answer is a bold "Yes".

## Conclusion

To sum it up, it is impossible to predict when Bitcoin will go back up again. It is a risky endeavor since the currency's price is influenced by a wide range of factors, as already discussed, and it is highly volatile.

However, there is reason to believe that it will. As more people learn about Bitcoin and become interested in it, the demand for it will likely increase especially if the overall global economy is strong.

Governments are beginning to recognize the potential of cryptocurrency and are passing laws that regulate and legitimize it. The technology behind Bitcoin is constantly improving and growing.

All of these factors could ultimately lead to an increase in the price of Bitcoin. And who doesn't want that to happen?


Will Bitcoin Go Back Up?

Markets are unpredictable: they can shoot up and go down quickly. This constant change is referred to as bull and bear markets. To put it simply, markets that are experiencing steady and sustained growth are bull markets. Markets experiencing a noticeable decline are known as bear markets.

The bull and bear have become quite symbolic in the investing world as they make it easier to note which markets are up and down. A common misconception about the bull and bear market terms is that they are only used when referring to the stock market. Bull and bear are used to note the conditions of almost every market, such as real estate and cryptocurrency.

## What is a bull market?

The [market for cryptocurrency](/news/article/crypto-impact) is majorly influenced by the general population. A bull market is when the price trends are going upward. In other words, a bull market occurs when investment prices keep rising for a sustained period. The majority is investing and the demand is higher than the supply. Confidence is soaring.

When a market price is seen quickly rising, one can conclude that this indicates the investors are optimistic or "bullish". If the price continues to go up, it may be the start of a bull market. When investors are bullish about a market, that is, they are confident that the price trend will continue to go up, they are known as "bulls". This causes more investors to come in, and the prices continue to rise.

When it comes to [cryptocurrency](/news/article/crypto-invest-strategy), the market is heavily influenced by the public. Public confidence in a cryptocurrency or a market is seen as an asset. Some investors use a strategy to observe optimism known as "market sentiment".

The thing about a bull market is that no matter what, the prices don't continue to go up forever. At some point, investors start to lose confidence and the prices start to go down. Some dips and fluctuations don't automatically mean that the market is not bull anymore. In fact, it is normal to have fluctuations even during a bullish period.

What marks the bull market ending and the beginning of a bear one is when there is a sharp decline in the price. This is when investors are not confident in the market anymore and the prices continue to fall.

## What is a bear market?

Contrary to a bull market, a bear market occurs when investor confidence is slow, and supply outweighs demand causing the prices to go on a downward trend. Investors who are pessimistic about the price trend and believe that the prices will continue falling during this period are known as "bears". It can be challenging to invest during this time because no one can tell when the bear trend will end.

This is due to reasons including economic growth, unforeseen circumstances, investor psychology, and more. A market is only considered to be bear when prices fall more than 20% for a sustained period. Bear markets can last very long, even years. During this time, investors usually look to sell for cash and security. This creates a seller market which contributes to bear market trends.

## Bull and bear - where should you invest?

As discussed above, there are several differences between bull and bear markets. Therefore, the investment strategies for both are also wildly different from one another.

Having a higher allocation of stocks during the bull market period is considered to be better because there is a potential for high returns. One can also capitalize easily in the bull market period by buying the rising stocks or, in this case, cryptocurrency, early and then selling before they hit their peak. This allows investors to gain more capital at a faster pace.

Alternatively, investing in a bear market requires investors to have more of a longer-term [investment strategy](/news/article/crypto-invest-strategy). Like the bull market, the bear market also doesn't last forever. So, when one invests in a bear market, they can typically profit a lot and get high returns on their investments when the cycle goes back to normal. 

Moreover, investors should also be on the lookout for temporary or short spikes if they are looking to sell early.

As an investor, one can use different bull and bear investment strategies like [short selling](https://www.forbes.com/advisor/investing/short-selling/), where investors bet on where the asset price will start to fall. In the crypto world, many investors use the dollar-cost averaging strategy. This is where they continue to invest a certain amount of money every week or month, no matter the price trend.

In either case, bull and bear markets will continue to happen. How one invests during this period largely depends on the investor. If someone is looking for short-term profits, the bear market is the way to go and vice versa.


blue image of cryptocurrency with bull and bear in foreground

Bull and Bear Markets - What to Know

In these turbulent times in crypto, the term 'bear market' is echoing almost everywhere. If you are a [crypto newbie](/news/article/crypto-invest-strategy), it might be one of those tricky terms for you. Here's an easy explainer that will reveal what it is and how you can navigate through it. 

A crypto bear market is an intrinsic part of the cryptocurrency world. It denotes the market state where asset values are continually depreciating. Here, investor sentiments are pessimistic, and demand is lower than supply. More importantly, the minimum decline in the prices of digital assets has to be at least 20% for an overall bearish trend.  

## Bear vs bull market

To completely understand the cryptocurrency bear market, it’s crucial to see it in [contrast](/news/article/crypto-fear-and-greed-index) with the bull one. A bull cycle is the exact opposite of a bear cycle. Where bullish trends indicate high demand and lower supply, bearish show low demand and higher supply. 

Investors have confidence when the trends are bullish and movements are upwards. It triggers a favourable economic environment with a sustained increase in asset values. 

Another significant difference between the two is economic activity. In a bullish cycle, since the economy is strong, there is more trading and liquidity. Contrarily, the bearish cycle has lower trading activity and liquidity. There is also increased selling pressure among the investors, further decreasing prices.

However, the bearish cycle allows investors to buy assets at lower prices. So, you can make better profits when the crypto trends enter a bullish cycle.  

## Signs of a bearish market

Here are a few of the signs that indicate market bears.

1.	A prolonged period of declining prices of cryptocurrencies. There is at least a 20% dip in the values of the assets. 

2.	Increasing [FUD](/news/article/blockchain-energy-fud) (fear, uncertainty, and doubt) among investors, indicating negative sentiments and low confidence.

3.	High selling pressure.

4.	A lower trading volume.

5.	The lower price of cryptocurrencies in the futures market as compared to the current price.

6.	The 50-day moving average of an asset crosses its 200-day value, known as the death cross.  

## How to stay afloat in the crypto bear market?

Bearish trends can be troubling for novice traders as we start panic selling during this period. But, this mostly results in losses rather than gains. So, what should one do when the trends go bearish?

1.   Dollar-cost averaging (DCA)

In the bearish cycle, many people try to time the bottom. However, this exposes them to more risks as it is a gruelling task. When you go to [buy the dip](/news/article/what-crypto-to-buy-now), it is possible that the asset’s price may dip further than expected. Hence, DCA can be the least riskier strategy in this scenario. 

It allows you to invest small amounts in a coin at regular intervals. You can invest weekly, monthly, or at any set period. If you consistently follow this strategy, it will help you accumulate a high-conviction digital asset. So, when the bulls enter the market, you will be better positioned to make profits.

2.   Study the causes of the bearish trend

Secondly, studying the causes behind the bearish trend is essential. The traditional market also indirectly affects the behaviour of virtual currencies. For instance, you can start with the inflation rates. 

Currently, in the United Kingdom, [the inflation rate is 11.1%](https://twitter.com/bankofengland?s=20), against which the government’s target is 2%. It means there’s a tightening monetary policy, which is less favourable for economic activities. It is advisable to look for a drop in inflation rates. 

Other causes include oil prices or other world events that may affect the economy, like the [Russia-Ukraine](/news/article/ukraine-russia-crypto-wallet) war. 

3.   Investing in crypto ETF

Investing in crypto exchange-traded funds (ETFs) is safer than investing in one currency. ETFs give you exposure to multiple cryptocurrencies and their blockchain technologies. It works in a way somewhat similar to stocks and allows diversification of assets.

4.   Keep an eye on industry giants

To develop a long-term investment strategy, it is advisable to analyse the moves of industry giants. The money flow from large financial institutions like [BlackRock](https://www.blackrock.com/corporate/global-directory), [Goldman Sachs](https://www.goldmansachs.com/), or others may indicate the market state. Their investments in certain areas can signal where to invest for long-term gains.

## Bottom line

A sudden decline of double digits in the prices of digital assets can be scary for less experienced traders, if not everyone. However, if you know the signs of a crypto bear market and develop a long-term investment strategy, you can more likely survive the declining cycle. DCA, [investing in ETFs](/news/article/crypto-etf-uk), and closely monitoring the world events that affect the economy can help you.


red iamge of bears over bearish poor crypto stocks trending down

Crypto Bear Market: How to Survive

[Crypto.com](https://crypto.com/) was one of the sponsors of the 2022 [FIFA World Cup](/news/article/world-cup-vr-viewing) in Qatar. The initiative was taken to promote its Cronos crypto (CRO). It was expected that the publicity campaign at the biggest sports tournament would boost the coin's value.

However, the tournament offererd little exposure to CRO. It failed to trigger any significant price action for the coin. While many cryptocurrencies were consolidating their positions before a potential rally during Christmas, CRO is still bearish. Currently, the trading price of Cronos is only $0.064.

## CRO’s market value dropped by 50% in November

Instead of getting a boost, the Cronos crypto price fell by more than 50% in November. The FIFA World Cup did not benefit Crypto.com in providing global exposure. It is partly because of the politicisation of this sports event. The ban on wearing LGBTQ+ armbands and the prohibition of alcohol at tournament venues created controversy. 

Currently, the media is mainly generating negative headlines for FIFA and the Qatari Government. It has taken the limelight from the sponsors and has somewhat affected their reputation. 

## The effect of FTX contagion

The [collapse of the FTX exchange](/news/article/ftx-collapse-blockfi-suspend-withdrawals) also played its part in the price decline. It has become an unstoppable contagion that has affected numerous DeFi projects. The entire cryptocurrency market experienced the impact of its collapse in November.

CRO suffered from the FTX crash as it is an exchange token like FTT. The FTT token was the native token of the FTX exchange. Likewise, CRO powers the Crypto.com exchange. Cronos felt burnt as investors lost trust in tokens dependent on exchanges' performance.

Unfortunately, CRO remains one of the coins that failed to recover. It was trading at around $0.12 at the start of the month. But after the first week, it saw a sharp decline that persists. At the end of the month, it had shed more than 50% of its market value. It is now trading at around $0.064, according to [CoinMarketCap](https://coinmarketcap.com/currencies/cronos/).

## Cronos crypto price prediction

Currently, Cronos’ crypto price is less than its 200-day and 50-day simple moving averages (SMA). It is showing a continuous bearish trend while indicating high selling pressure. Moreover, the trends are neutral to bearish for the coming weeks. 

Now, let’s see the long-term price predictions for Crypto.com coin. The forecast from [PricePrediction.net](https://priceprediction.net/en/price-prediction/cronos) shows that next year, CRO’s price will average $0.098. Besides, it may top the price charts with $0.11. Moreover, in 2025 it is likely to maintain the average market value of $0.22. According to these insights, it is expected to reach the $1 mark in 2030 and will average $1.44 in the year. 

In comparison, [Coin Codex](https://coincodex.com/crypto/cronos/price-prediction/) predictions are slightly bullish. It predicts that in 2023, CRO’s value may reach $ 0.193269 to $ 0.332090. Moreover, it suggests that the token may hit $1 in 2025. Potentially, its price may reach $ 1.634169 in the new year. 

## Is Cronos crypto a good investment?

The [Crypto.com coin](/news/article/crypto-com-card) blockchain introduces an open-source protocol. It allows the mass adoption of digital assets and promotes the benefits of ownership. The token also has the backing of one of the most influential exchanges in the market. 

Unfortunately, at the moment, investor confidence is relatively low in such exchange-backed tokens. It is showing bearish trends and has already shed 50% of its value in a month. It seems highly unlikely that the coin will recover in the near future. That's why it does not seem like a good time to buy Cronos.


green glowing cronos crypto logo on black background

Cronos Crypto Publicity Falls Flat at World Cup

Millions are searching for the answer to the question, 'is crypto dead?'. This key phrase brings forth millions of results in articles covered by reputable financial news outlets across the globe because of the liquidity issues that have mired the crypto finance industry in November 2022.

The second-largest cryptocurrency exchange, [FTX](/news/article/ftx-bankrupt-who-to-blame), which recorded at least $1 billion in daily volume and trailed only Binance in exchange rankings, filed for Chapter 11 bankruptcy protection in the US on 11 November. Filing for Chapter 11 bankruptcy means that FTX has many creditors who have poured liquidity into the company, but it has taken this step so that it can propose a reorganization plan to keep the business alive and pay creditors over a given period. The Sam Bankman-Fried-led company has seen the freezing of its assets by the Bahamas government, while provisional liquidators chosen by the country's securities have agreed to continue the [bankruptcy proceedings](https://www.cnbc.com/2022/11/22/ftx-lawyer-says-in-first-bankruptcy-hearing-this-is-different-animal.html) in Delaware, US.

Following the collapse of FTX and its bankruptcy filing on 11 November, the total market capitalization of the entire crypto industry plunged by more than $100 billion in 10 days. There was a 13% decrease from 11 November's $840 billion to approximately $728 billion on 21 November. Due to interest in tokens such as Trust Wallet Token (TWT) - which has risen by more than 100% in the last two months due to increased demand for crypto wallets as a result of its self-custody purposes - the markets have made some gains.

It recouped more than $50 billion in the three days towards the close of 24 November, which saw capitalization climb up to $791 billion, data from [Trading View](https://www.tradingview.com/x/4jMz1P1X/) showed. 

![Picture2.png](https://s3.eu-west-2.amazonaws.com/prod-monitalks-media/Picture2_36e7999c8f.png)
 
Despite the billions of dollars of liquidity that poured into the market from 21 November to 24 November, the industry had not accounted for the remaining $50 billion that had left the market.

These metrics have become a major cause for concern for many stakeholders in the industry, prompting the question, 'is crypto dead?'. But the roots of FTX's demise were sown 12 months ago.

## Terra Luna's collapse

The seeds for the contemplation of the question 'is crypto dead?' were sown in 2021. This was a period where sophisticated (traders and investors who conduct fundamental and technical analysis before making decisions) and unsophisticated (those who do NOT) saw multiple percentage gains within a short time. 

Cryptocurrencies such as SAFEMOON and meme-inspired digital currencies such as Shiba Inu (SHIB) and Dogecoin (DOGE) brought more than 10,000% gains to their holders. Low-cap digital assets by market capitalization (coins with less than $2 billion in value) were not the only assets to see gains. Medium (digital assets with more than $2 billion but less than $10 billion in market cap) and large (coins and tokens with more than $10 billion in market value) such as Bitcoin (BTC), Ethereum (ETH),

Cardano (ADA), Ripple (XRP), Solana (SOL), Polkadot (DOT), Litecoin (LTC), and Dash (DASH) also brought triple-digital percentage gains to investors.

After the industry reached a peak of $3 trillion in November 2021, the fear of missing out (FOMO) set in. With reports of millions of dollars being made within a short time circulating on pro-crypto news forums and websites across the globe, millions more joined to milk the cow. Unfortunately, whatever goes up also comes down. During the pandemic's peak in March and April, the financial markets were brought to their knees, with BTC trading below $4,000. What followed was a bullish market that saw decentralized finance (DeFi) tokens such as Compound (COMP), Aave (AAVE),

Uniswap (UNI), and Yearn Finance (YFI) lead a turnaround towards the end of 2020. It was that turnaround that led to the record highs achieved by the crypto market in 2021.

At the beginning of 2022, there was the invasion of Ukraine by Russia, and this led to a rise in commodity prices. Industry-wide reports of inflation began circulating online in February and March. This was a time when the roots of bearishness which commenced after the highs in November started showing their branches.

What followed was the increase of interest rates by the Federal Reserve in the US. Millions of people jumped onto the crypto bandwagon, and DeFi especially, because of the above-average returns it promised. Since the US is the financial capital of the world, a rise in interest rates in the country led to a significant spike in interest rates in many developing countries whose citizens rely on crypto for passive income. Many of these residents and some crypto holders in developed economies began dumping the highly volatile asset class for safe and risk-free government bills and bonds that can add three, six, nine, and 12 months of passive income to their regular salaries.

In the middle of May, the shaky market saw the collapse of one of its new major assets in the form of [TerraUSD (UST)](/news/article/terra-luna-collapse), an algorithmic stablecoin that supported the Terra project. As one of the major projects in the industry with more than $30 billion in total value locked (TVL), the collapse of the token wiped more than $40 billion off the market within two weeks. 

As of 24 November, around $2.2 trillion had been wiped off the market since November 2021's highs. Holders of BTC, ETH, ADA, the old Terra (LUNA), and now FTX Token (FTT) have taken the biggest hit. The industry-wide bloodbath was captured by [TradingView](https://www.tradingview.com/x/bcnxPIIH/).

![Picture3.png](https://s3.eu-west-2.amazonaws.com/prod-monitalks-media/Picture3_fe5af36b85.png)

## So, is Crypto Dead in 2022?

To outsiders of this broad industry, crypto is on its knees in 2022. Unfortunately for the same outsiders, crypto is more than some virtual assets on screen being traded by millions of people daily. Its underlying infrastructure, blockchain technology, has been tapped by many financial institutions to improve their systems.

A cryptocurrency like Ripple's XRP is used in the company's on-demand liquidity (ODL) feature during cross-border payments. This has helped millions of remittance companies that have partnered with Ripple meet their customers' demands.

One of the emerging sectors of the crypto industry is non-fungible tokens (NFTs). As of 24 November, NFT global market sales had surpassed $40 billion with projects such as [Axie Infinity](/news/article/axie-infinity-coin), Bored Ape Yacht Club (BAYC), CryptoPunks, and NBA Top Shots among highest selling collections. Blockchains such as Ethereum, Avalanche, Binance, and Solana continue to play an integral part in NFT creation and sales. 

Aside from that, sports clubs have also tapped into the industry to improve fan engagement. Global Fan Tokens have surpassed more than $100 billion, with football clubs such as Paris Saint Germain, Lazio, AC Milan, AS Roma, and FC Barcelona among the top teams whose tokens lead the ranks of the most purchased.

Is crypto dead? In a nutshell, no. The market is going through a phase where shady projects are being thrown out, while others are being restructured to protect investors from losing billions of dollars of their hard-earned money.



Is Crypto Dead After FTX Collapse?

Wondering what crypto to buy now? If you're looking to purchase cryptocurrency while the market is deep in the throes of bearish momentum, there are a few things to consider.

First, what are your investment goals? Are you looking to invest in a new currency, or are you looking to speculate on future price movements?

## What crypto to buy now

If you're simply looking to invest, then you might want to choose a relatively stable crypto. And if you're looking to speculate, then you'll want to choose an asset with a high potential upside.

Of course, you'll also want to consider transaction fees, security, and liquidity. Overall, a mix of crypto assets is most appropriate for a balanced investment portfolio.

But with thousands and thousands of coins available in the market today, choosing the best cryptocurrency is no easy task. So, today, we will help you see which crypto projects are the most valuable and have the most potential.

## Bitcoin (BTC)

The undisputed king of the crypto market, Bitcoin is the most well-known and popular cryptocurrency, so it tends to be more expensive to buy and sell. With a market cap of more than $400 billion, Bitcoin is the largest crypto asset.

Bitcoin was first proposed in 2008 by the pseudonymous Satoshi Nakamoto. It has since grown to become the most valuable cryptocurrency in the world, with its market capitalisation surpassing $1 trillion during the height of the bull market.

As of writing, BTC is trading at around $21,000, down 69% from its all-time high (ATH). While Bitcoin has one of the least upside potentials among the major cryptocurrencies, it is the safest bet in the crypto market.

Even though there are thousands of other cryptocurrencies in the market, Bitcoin still represents 36.9% of the cryptocurrency market cap. Bitcoin has also shown consistent value growth throughout the years, pretty much like any other leading cryptocurrencies on the market. 

## Ethereum (ETH)

[Ethereum](https://ethereum.org/en/) is an extremely popular cryptocurrency that is the base for all the innovation happening in decentralised finance (DeFi), non-fungible tokens (NFTs), decentralised autonomous organisation (DAO), GameFi, and Metaverse.
Sitting at the second spot, ETH has a market cap of $200 billion. The price of Ether, meanwhile, is down over 66% from its ATH.

The Ethereum network now has hundreds of cryptocurrency projects built on it, making Ethereum one of the most valuable cryptocurrencies in the market. In addition, the network constantly goes through improvements, and the latest upgrades, "The Merge" and EIP-1559, have effectively made the native currency ETH a deflationary asset.

## Binance Coin (BNB)

While Bitcoin is an excellent choice for aspiring crypto investors who wish to buy a well-established crypto with a history of growth over time, it's mainly for long-term investments. That's where coins like BNB are a great way to get the most upside.

BNB is the native coin of the largest cryptocurrency exchange Binance. The trading platform uses a burning mechanism to remove BNB's total supply, and the more people use its blockchain BSC, the more BNB gets burned.

The coin is currently down 48.5% from its ATH over a year ago.

## Dogecoin (DOGE)

If you are looking for quick and serious gains, you don't want to miss out on this coin. Dogecoin is one of the best meme-based cryptos to create some millionaires and billionaires in recent years, thanks to support from respected celebrities such as Elon Musk, who has voiced his support of the cryptocurrency on an ongoing basis.

Musk is partly responsible for Dogecoin's huge rise, having called it his favourite crypto, but at the same time, the tech billionaire is also responsible for marking the top of the DOGE in May. So, you have to be careful with this coin and, of course, keep an eye on Musk's Twitter for mentions of anything remotely associated with DOGE.

Currently, down 83% from its ATH, Dogecoin is one of the most famous cryptos, positioning itself as the best-undervalued cryptocurrency to invest in due to its potential upside.

## Polygon (MATIC)

Polygon is a powerful infrastructure layer for Ethereum that enables Ethereum scaling and Dapp development. It is a Layer 2 solution that uses Ethereum as its base layer and enables Ethereum scaling through sidechains. Moreover, it's also home to 50k Dapps and billions of dollars-worth of assets.

This crypto project is particularly known for its partnerships with well-known companies such as Meta (formerly Facebook), Starbucks, Robinhood, Stripe, Adidas, and Flipkart. These partnerships help its native coin MATIC rally, down about 59% from its ATH of $2.92, which it hit less than a year ago.

## Cardano (ADA)

One of the best-performing cryptocurrencies, ADA boasts a $15bn market capitalisation. The coin is down more than 86% from its ATH above $3, making it a potentially profitable investment. 

While the Cardano network may be slow in keeping up with the crypto market advancement, the promise of delivering these lofty goals makes ADA attractive among investors.

## Ripple (XRP)

XRP currently sits at sixth position while its value is down 85% from its ATH of $3.40 hit five years ago. The digital assets' price has been relatively flat for several years, with the biggest issue being litigation.

After the SECs sued Ripple and its two top executives for reportedly selling unregistered securities (XRP), many crypto exchanges removed XRP from their platforms. But with many entities, including Coinbase, backing Ripple and [rising optimism about a Ripple victory](/news/article/sec-vs-ripple-news) has once again placed XRP on the list as the best cryptocurrency to watch. 

## What crypto to buy now conclusion

Some of the honourable mentions include layer 1 giants Polkadot (DOT) and Solana (SOL), and privacy coin Monero (XMR). You can purchase these cryptocurrencies via many exchanges, like Coinbase, Binance, Kraken, Gemini, and FTX. 

On these trading platforms, you can find not only the most popular coins, but also the most obscure ones.

While investing in cryptocurrency is still very much a speculative endeavour, the above-mentioned cryptos are some of the best projects in the market today. However, always remember that crypto is inherently volatile, so exercise extreme caution when allocating part of their portfolios to cryptocurrency.

Ultimately, there is no one "best" cryptocurrency to buy. It depends on the investment goals and risk tolerance you have. Do your own research and choose the cryptocurrency you think is right for you.


What Crypto to Buy Now?

Ethereum (ETH) price dropped after the network completed a long-awaited upgrade known as "the [merge](/news/article/the-merge-ethereum-nft-impact)". So, why is Ethereum going down even after an upgrade?

Despite a successful merger that moved the Ethereum network from an energy-intensive proof-of-work mechanism to a proof-of-stake consensus, this leading altcoin fell more than 7% below its $1,500 threshold.

Experts from the [Forbes Advisor](https://www.forbes.com/advisor/investing/cryptocurrency/why-is-ethereum-down/) expected the price of Ethereum to drop slightly after the long-awaited merger. ETH is moving along traditional markets, especially the tech-heavy Nasdaq Composite. However, crypto enthusiasts are bullish on Ethereum's post-merger prospects. As they point out, there are no fundamental changes regarding Ethereum. If anything, the combined ecosystem is better positioned in terms of decentralization, energy efficiency, and growth, further cementing its position as the dominant Layer 1 blockchain.

## Why is Ethereum going down from its initial fall after the merger?

Cryptocurrencies like Ethereum are risky assets subject to volatility if inflation continues. The US Federal Reserve is attempting to keep inflation in check and has made it clear that its priorities are now on fighting inflation before attempting a soft landing.

The latest inflation rate has fueled investors to fear the rise in interest rates. By raising interest rates further, the Fed can strengthen the US dollar and extract more liquidity from the market. Reduced liquidity can drive down the prices of riskier assets, such as technology stocks, cryptocurrencies, and growth stocks, as investors curb spending.

Amidst rising inflation and falling liquidity, there has been little institutional investment in cryptocurrency markets other than Ethereum. There has been much excitement around the Ethereum merger and what it is bringing to the Web3 space. This decoupling move (from Ethereum) is expected to continue in the near term as investors process the [long-term implications of the merger](/news/article/ehermine-switches-off-servers), including increased energy efficiency, growth of the staking economy, and the potential deflation of ETH.

## When will Ethereum prices hit bottom?

Just as it is difficult to tell why Ethereum is going down, no one can tell for sure if Ethereum has bottomed out. Aside from the immediate aftermath of the merger and Fed price pressure, other factors could be driving a broader downtrend for Ethereum.

Ethereum's recent low of $880 was reached on 18 June. The cryptocurrency has been up and down since then. Its most recent high reached just over $2,000 in mid-August. However, it was down 58% from its all-time high in November 2021. Ethereum's price today stands at $1,299.

Investors once believed that cryptocurrencies could be viewed as a hedge against inflation, but this has not materialized. Cryptocurrencies are starting to move alongside riskier asset classes, such as growth stocks and the tech stocks of Nasdaq.

In other words, investors can escape cryptocurrencies for traditionally safer assets such as gold, oil, and real estate during times of high inflation. All of this does not bode well for Ethereum's near-term price potential.

## Bottom Line

Like all cryptocurrencies, Ethereum is a risky investment. After hitting an all-time high of around $4,800 in November 2021, Ethereum has been down about 72.9% since then. Risky investments can experience large price swings and extreme volatility. However, it can also be compared to the Nasdaq, which is full of risky growth stocks.

As a relatively new asset class, no one knows what the future holds for cryptocurrencies as an investment vehicle, and the [news about such currencies](/news) is constantly changing. Predicting their price movements is very difficult. Cryptocurrencies are also subject to cyber hacks and future regulations that can affect their overall value.

In a dynamic investment like cryptocurrency, an investor cannot just stop by thinking, "Why is ETH going down?", because it can always go up again, and then you will be in for a big windfall.


Why is Ethereum Going Down?

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 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, 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.


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