Crypto Crash 2022 | Could Bitcoin Fall into a Black Hole?

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If Bitcoin’s price falls below the $20,000 level again, industry experts anticipate a seismic shift that will have a long-lasting impact on the landscape of cryptocurrencies. 

There is a widespread agreement among cryptocurrency experts at this time that the market bottom has not yet been achieved. The depreciation of Bitcoin, in particular, can have a big influence on the market as a whole. 

Expert traders in the cryptocurrency market discusses a prospect that many people in the audience did not want to hear: the likelihood of another crash in the cryptocurrency market. The onset of winter is drawing near!

Crisis State: A Rollercoaster-Ride That No One Asked For

Six months ago, Coinbase, a well-known exchange for cryptocurrencies and tokens, paid 14 million dollars for an advertisement during the Super Bowl. 

Brian Armstrong, the company’s CEO, revealed intentions to lay off around 20% of the staff, which would leave more than 1,000 workers. He said that the firm had perhaps lately hired a little bit too many people and that the present state of the economy was causing a “crypto winter.” 

The last time the phrase “crypto winter” was used was in 2017, when Bitcoin dropped from its all-time high of about $20,000 to around $8,000. 

With its layoffs, Coinbase is not the only company in its sector. Companies like Blockfi, Crypto.com, and Gemini have also just stated that they will be letting go of a number of staff. 

The circumstances of the slump are known; there is no room for guesswork. High inflation and worries about a future Fed Funds rate hike are the primary causes of the hangover. That’s not all, though. 

Additionally, there are negative reports from the actual scene. For instance, the cryptocurrency business Celsius Network declared on Sunday that it will stop processing any transactions. 

According to the New York Times, the organization handles assets worth more than $20 billion and has 1.7 million users. 

However, it is currently experiencing a problem that is further depressing the market as a whole. Investors are now uncertain as to when they will see their investment returned. 

The War Is Not Over: There Might Be Some Upcoming Dips

The fact that Bitcoin has fallen by about 30% has sparked fresh emotions, especially during the slide below the $20,000 threshold. Trading experts, who are well aware of the Poloniex trading bot usage, defend the trend are trying to convince skittish investors not to throw in the towel at such a delicate time.

This development is expected; a seasoned investor should always be prepared for such changes. 

In the stairwell “When questioned about the recent event on the coin-update podcast, trader Arthur Hayes responded, “If these levels break, 20,000 BTC and 1,000 ETH, we may expect enormous selling pressure on the spot markets as traders hedge. Additionally, we may anticipate that some OTC (Over-The-Counter) traders won’t be able to adequately hedge their positions and could end up bankrupt.” 

Heyes contends that greater losses are now likely given the Federal Reserve System’s (Fed) recent increase in interest rates. Additionally, the EU is presently developing stronger crypto regulations that should go into force shortly. 

Other traders also share this pessimistic perspective. Some of them make arguments based on charts and believe that Ethereum will bottom out around $667 and Bitcoin will bottom out at $13,000. 

Unsuitable “Schadenfreude”

On the internet, every skeptic of cryptocurrencies is convinced that they are correct. The meme battle has already been going on for a few weeks across several platforms, and it has typically been entertaining to watch. 

Greed is a common accusation leveled against the bubble. They claim that they were taken in by the hype and that the best outcome of the cryptocurrency meltdown is that mining is starting to become prohibitively costly for many individuals. After all, less effort and resources would be thrown away if it were to take place. 

The remarks barely touch on two different topics. First, a lot of individuals have bought cryptocurrency with CoinoBots to safeguard their assets in conflict zones, or rather, a lot of donations were made in the form of cryptocurrencies right at the start of the Ukraine war. 

Second, regardless of whether or not they are based on blockchain technology, all markets are now experiencing a severe bear market.

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