The S&P 500 is down more than 26% from its 2022 high.
How does this affect Bitcoin? Is Bitcoin going to crash? If Bitcoin is crashing and a wider crypto crash is going on, has the Bitcoin price drop hit rock bottom?
There are so many questions about what’s happening to Bitcoin and the wider cryptocurrency world — and not enough answers.
One of the main reasons is because of misinformation and misunderstandings of what’s happening. Keep reading to find out about the Bitcoin price drop and when we might see a turnaround.
Is Bitcoin going to crash?
First off, what is a “crash?”
Traditionally, a stock market crash means that there’s been a sudden, large decline in the price of stock. This stretches across a large cross-section of a stock market like NYSE, NASDAQ, or others.
What do we see with Bitcoin?
According to Coindesk’s XBX price tracker, the one-month history shows a high of $32,147 and a low of $18,034. What we see in Bitcoin is a steady recovery from that initial sharp decline after a slowdown with a more than $2,000 increase.
Since the damage is due to dollar price inflations and several years of runaway bad monetary policy in the US FED, we’re seeing the effects across every stock market.
Combine an ongoing pandemic that also contributed to derailing the world economy (and all the other events of 2022) and this is the result.
What we didn’t see was a flatline in Bitcoin or crypto. Rather, we saw an early recovery after barely a week, while traditional markets continue to drop like a rock.
What about wider crypto?
To learn more about the wide world of crypto, make sure to connect with us for specifics.
In the meantime, the main issue with the crypto community at large is manyfold. A quick rundown is:
- Stablecoins pegged to USD are affected by inflation
- Coins, tokens, and networks too reliant on Stablecoins
- With the prop gone, those markets decline
- Some will recover, others won’t
- Traditional marketing and speculation mindsets polluting crypto
Entire theses could be written on a single point, but any are valid reasons for the market corrections we’re seeing in the broader cryptocurrency world.
Bitcoin and crypto: Economic airbags
It’s hard to give a guarantee that Bitcoin and other cryptocurrencies will recover.
The general consensus, though, is that Bitcoin and crypto are here to stay. Once the problematic players are gone through survival of the fittest, the whole space will be stronger for it.
They help the world to recover by giving a proven, hyperinflation-resistant medium of exchange and store of value to millions of people. Many coins, such as Solana, Litecoin, and TRON are already seeing double-digit recovery.
Recovery on the horizon
Is Bitcoin going to crash? It already did and it’s recovering, along with the cryptocurrency market in general.
Traditional markets are still plummeting, and we won’t see the end any time in the following hours or days. Regardless, it doesn’t mean that all is lost. There will be recovery and crypto will play a huge part.
Need more info on Bitcoin and the economy? Keep browsing our articles for the latest news and reliable info.
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