Experts believe there could be at least one more “big crypto crash” on the horizon. This could be likely as it’s the second time in recent weeks that Bitcoin has fallen below $20,000. This price point is regarded as pivotal.
There are talks that the much-favored cryptocurrency could further decline akin to 2013 and 2017 when it plunged 85%. Moreover, Ethereum – the second most valuable crypto asset in terms of market cap – has lost more than two-thirds of its value since November 2021. Nonetheless, it continues to hold above the $1,000 mark.
Edward Moya, a senior market analyst at OANDA, believes the crypto market could see one more drastic sell-off before it’s on the road to recovery. And Kavita Gupta, a venture capitalist, expects Ethereum to fall to the lows of $500, an additional 50% drop from the current price. Moya says everyone is becoming a snowbird and avoiding the crypto winter. The analyst explained that if the bloodbath on Wall Street continues in the third quarter, Bitcoin could be vulnerable to another ugly dive toward $10,000.
Many experts say another crypto winter is already setting in. This can be seen in ongoing layoffs and ongoing liquidity crises in the crypto industry. And crypto prices will most likely remain low for the foreseeable future – as it was in 2018 and mid-2020. Crypto prices will drop even further in the coming weeks and maybe months. Past bear markets experienced 85% price corrections from all-time highs. Furthermore, fresh concerns about the macroeconomic environment could get worse as the Russo-Ukraine war runs into its fourth month.
Crypto companies have tried to mitigate losses by either laying off staff or ceasing withdrawals. Some have even filed for bankruptcy. But this has raised questions about the health of the crypto industry.