Bitcoin & Ethereum Price Drop - What Does It Mean For Investors?

Bitcoin & Ethereum Price Drop - What Does It Mean For Investors?

2022-06-23 | Selina Mathew

Bitcoin & Ethereum Price Drop - What Does It Mean For Investors?

Cryptocurrencies have taken the world by storm, but the market has now crashed below $18,000 for the first time since 2020. Some experts say that this is just a temporary setback and that there are plenty of reasons for it to recover; however, others believe there's more trouble ahead. Here's what you need to know.

There are plenty of reasons for the market to crash.

The crypto market has been volatile over the past few weeks, with Bitcoin and Ethereum trading at record highs. But then, on Monday, the market experienced its first major crash since January 2018.

There are many reasons for this crash. For one thing, the prices will likely continue to tumble until there is a change in regulation or a better understanding of how cryptocurrencies work by investors and consumers alike. 

However, another factor to consider is that cryptocurrencies are still not a safe or reliable investment option.

A lot of people have been very wary about the market.

It hasn't happened yet, but if you look at Bitcoin's graph, it looks like it's going to plunge below $18,000 for the first time in two years. 

Ethereum is also less than $1,000 today after hitting an all-time high last week.

The cryptos that have historically done well have lost more than other cryptos.

When we look at the cryptos that have historically done well, they've lost less than others. Bitcoin has lost the most, followed by Ethereum and Ripple.

Bitcoin Cash and Litecoin have lost a lot less. In fact, Bitcoin Cash has been the best performer of all three since 2020 during this bear market as it's managed to stay above $1,000 while other cryptocurrencies continued to plunge below their previous highs.

Ethereum Classic has done very well in this period as it lost just over 40% of its value since 2020 compared to other coins like NEO, which has seen a 91% wipe-off in its value since then!

Ethereum has crashed more than Bitcoin, and Ripple has lost most of all cryptos.

The crypto market is in a state of flux. The overall market cap has fallen by more than $200 billion in just one week, leading to the first time since 2020 that Bitcoin has dropped below $18,000.

On Wednesday, the total cryptocurrency market value dropped below the $300 billion mark for the first time since November 2018.

The most popular cryptocurrencies have all seen significant losses over this period, but Ethereum has lost more than any other major coin so far this year—and its price is still falling.

Additional security is needed to guard against future hacks, power outages, or government actions.

You'll need to ensure an additional layer of security is in place. This is because the crypto market isn't a safe and secure environment by any means. It's been widely reported that cryptocurrency exchanges have been hacked numerous times over the years. It's also important to note that power outages and government actions can also cause major losses in the industry.

Some cryptocurrencies are becoming scams, while others might hit rock bottom before recovering.

Cryptocurrencies are a relatively new concept that many people don't understand. Simply put, cryptocurrencies have no intrinsic value and aren't backed by anything tangible. Any government or central bank does not regulate them; they're not backed by gold or silver or even backed by a company that holds assets from which the coins can be redeemed (like with gift cards). Essentially, cryptocurrency is just computer code that's created through an algorithm.

Conclusion

There's a lot of speculation about what will happen next, but it's clear that cryptocurrencies have not reached the point where they can become full-fledged replacements for traditional currencies. There are still many issues with security and scalability that need to be addressed before we can expect widespread adoption in the future. read more @ Top Cryptocurrency News

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