Every stock market experiences ups and downs, but global markets have been in the doldrums for a while now. This statement is particularly true for crypto – BTC is below the $21,000 level and ETH hasn’t seen much of a price movement upwards. The regular stock market lost a lot of money and is slowly regaining ground.
Let’s talk about bear markets with crypto in mind. BTC is currently trading at $20,800. Its value has dropped by almost 2/3rd and it keeps swinging between specific ranges. According to seasoned market analysts, BTC will swing between $18,000 and $22,000 in price. This price will change only if investors get confident enough that their country’s central bank can manage inflation properly. Only when it is under control and the global economy doesn’t go into a recession will investors buy crypto.
BTC experienced positive momentum earlier this week but it remains in the mentioned ranges. ETH has also been trading at $1350 and volumes remained flat. Every other altcoin has lost quite a bit of their value. Most of the major indices in the US market finally made it into green territory but inflation still poses a problem. Many well-known brands are posting low earnings and there are signs that the global economy could recover.
Digital assets lost quite a bit of their value in 2018 due to the ICO bubble and a huge glut of ETH and BTC in the market. Investors who didn’t panic at this point did well and beat market expectations. On the flip side many small investors lost a lot of money due to fraudulent tokens. It can be said that the 2018 market crash was much smaller than the correction in 2022.
