To say that the cryptocurrency market crashed in 2022 would be a gigantic understatement. Bitcoin went from being worth almost $70,000 in November 2021 to being worth less than $20,000 in November 2022.
This crypto crash has made a lot of people apprehensive about investing in crypto from here on out. They aren’t 100% sure that another crypto market crash isn’t going to come along and knock crypto prices down even further.
So, what caused the crypto market to crash in 2022, and is it a sign of things to come for the future of crypto? Find out below before you continue buying and selling crypto.
Crypto Firm Failures
When the Bitcoin price peaked back in November 2021, it led to an increase in the total number of crypto firms. Many of these firms were brand-new on the scene and interested in trying to cash in on the crypto craze.
But unfortunately, some of these crypto firms proved to be failures throughout 2022. Firms like BlockFi, Three Arrows Capital, and Voyager went belly-up and made people nervous about investing in crypto.
The FTX scandal is still playing out before our very eyes. There is a chance it could be even worse than expected and cause a massive crypto crash to continue.
At the beginning of 2022, FTX was valued at more than $32 billion. But by the end of the year, it was bankrupt and its founder Sam Bankman-Fried was arrested and charged with fraud.
The fallout from this scandal isn’t doing much to help crypto at a time when it’s really hurting.
According to a recent survey, only about 8% of Americans view crypto favorably as of late 2022. And it’s hard to blame them for not believing in crypto after seeing everything that went down in 2022.
There is, however, plenty of hope for those who are still buying into the crypto craze. Bitcoin has been holding steady in terms of price, and it has even experienced some surprising peaks in recent months.
If you would like to keep on buying and selling crypto in the aftermath of the crypto crash, the key is going to be finding the right places to do it. Learn about buying crypto and how to do it safely.
Keep paying attention to the latest news about crypto, too. There is sure to be a lot more news coming out about crypto in the days, weeks, and months to come.
Learn From the Crypto Crash and Push Forward
If the latest crypto crash taught us anything, it’s that crypto isn’t always going to be as stable as some people might like. It’s going to have the same kinds of peaks and valleys that other forms of currency have.
Just because there was a crypto crash doesn’t mean you have to give up on crypto forever. You just have to make sure you take the lessons from the crypto market crash and apply them in the future.
Check out other informative crypto-related content by reading through the other articles on our blog.