The global crypto market cap has dropped 0.70% to $934.09 billion in the last 24 hours as of September 25, while major cryptocurrencies such as bitcoin are still trading low.
News in a Glimpse:
Major cryptocurrencies have been crashing since May and June of this year, and they are still trading low at the time of writing.
Bitcoin (BTC) has dropped by approximately $18,000 as of September 25.
Individual investors and large corporations are feeling the effects of the 2022 cryptocurrency crash.
The current crash is said to be the result of a global economic backdrop characterized by the pandemic, high inflation rates, and the threat of multiple recessions in many major countries.
Several market experts can't help but share their personal predictions amidst the market's happenings, which include both positive and negative predictions.
Since May to June of this year, the cryptocurrency market has reportedly crashed. Where major cryptocurrencies have already lost roughly $1 trillion in value. Bitcoin, one of the most popular cryptocurrencies on the market, is no excuse.
Bitcoin reached its all-time high in November 2021, when it was worth over $60,000 at the time. This year, around August, it experienced a massive drop, reaching as low as $20,000 in value.
The Fed raised interest rates by 75 basis points earlier today, causing Bitcoin (BTC) and the stock market to surge. However, at this point, crypto news reported that BTC has already dropped by $18,000 in Binance.
When the SPX and BTC had already crashed, they were able to recover and liquidate late shorts after a strong bounce back. However, it plummeted to new daily lows. The S&P 500 has already fallen 3,789 points at this point.
Cryptocurrency Crash 2022
The 2022 cryptocurrency crash is felt by everyone from individual investors who have already pinned their long-term savings plans on their cryptocurrency portfolios to massive mining companies operating in various parts of the world.
The current crypto crash is thought to be the result of a backdrop in the global economy caused by the pandemic, high inflation rates, and the threat of multiple recessions in many major countries such as Russia and Ukraine.
Because cryptocurrencies are decentralized in nature, they are not directly impacted by inflation; however, their impact is felt strongly by crypto investors. These investors were allegedly forced to withdraw their crypto investments.
This was widely reported when the US cryptocurrency lending company Celsius Network breached investor trust by freezing withdrawals and transfers in June 2022. Furthermore, the cost of living has already increased, while energy prices continue to rise.
Many successful cryptocurrency venture stories have emerged, particularly during bull runs. This crypto crash may scare and eventually drive new investors away, but seasoned investors already know that this is not the first or last time.
The cryptocurrency 2022 crash is a result of rising energy prices and inflation, and the massive drop in crypto value is expected to recover before the end of the year.
With the current vulnerability in the crypto market, several market experts can’t help but share their own predictions on what to expect in the market.
Crypto Chase, a well-known Twitter and YouTube analyst, predicts that cryptocurrency prices will crash in a “giga nuke,” with a 16% chance of happening after a 100 basis point rate hike.
The Crypto Chases expects liquidity to flow in two directions now that the 75 basis point hike has been announced. The first is in choppy price action, while the second is the standard ‘Darth Maul candle’ that aims to stop out longs and shorts.
Michaël van de Poppe
Michaal van de Poppe, a Twitter public figure, spreads caution among his over 600,000 followers. He stated in a tweet that the current crypto market pricing appears to be the ‘worst possible outcome,’ but that it is the best time to buy cryptocurrencies such as Bitcoin. He predicts that the market’s accumulation cycle will begin on or before 2023.
Trading tank predicted in a tweet that both the stock and crypto markets will fall in price as a result of the Fed’s 75 basis point rate hike announcement. This is due to higher inflation, and both the core CPI and the PPI data ‘came in hot.’
He even mentioned that the rate hike could potentially improve sentiments, leading to a sense of ‘victory la’ due to a mid-term crypto price rally. He also predicts further selling after a 100 basis point hike is announced. Where it has the potential to worsen the test of lows or crash.
MacnBTC tweeted his dark prediction, predicting that the Bitcoin price will reach $12,000 at the bottom of the bear market. In addition, he shared predictions for other cryptocurrencies, such as Ethereum reaching $700, Solana reaching $17, and Terra LUNA reaching the rock bottom by 0.