Second Crypto Crash In 2022 - Do You Want To Buy The Dip?
So far in 2022, there has been a second crypto crash in June.
When Terra Luna went under in May, it took $500 billion off the crypto market.
So far in June 2022, nearly $400 billion has left crypto, and for the first time since January 2021, the market cap of the industry fell below $1 trillion.
Many people who invest in cryptocurrencies may have thought that May 12 was a good time to buy the dip.
Back then, the price of one Bitcoin dropped from $40,000 to $28,000.
COPYRIGHT_WI: Published on https://washingtonindependent.com/w/second-crypto-crash-in-2022/ by Adaline Fritz on 2022-06-20T17:55:18.727Z
But if you had bought Bitcoin at $28,000, you would be 30 percent worse off because the price of Bitcoin today barely stays above $20,000.
All of this makes you wonder if this second crypto crash in 2022 is a good time to buy low.
It's over. Crypto Crash of 2022.
The first crypto crash may have been caused by the depegging of UST from its $1 price, but the main cause of this second crypto crash is the economy as a whole.
Based on a report from last week, the Consumer Price Index (CPI) said that inflation was 8.6% in May.
All markets were scared by this, and the Dow Jones Industrial Average dropped 900 points and the S&P500 went into a bear market.
Inflation is at its highest level since 1981, which hurt the Nasdaq composite by 4.68 percent.
The price of Bitcoin dropped from $27,000 to $22,000 on June 13.
The price of Bitcoin kept going down in June, and on June 15, it hit a low of $22,180.
As a result of falling cryptocurrency prices, the lending and staking network Celsius froze assets worth more than $11 billion on Monday.
On Tuesday, Coinbase, the biggest cryptocurrency trading platform in the US, said it was letting go of 18% of its full-time staff.
Because of bad news about crypto and bad market conditions, crypto is going to crash again in June 2022.
There is some evidence that trading indicators are good for Bitcoin.
The relative strength index (RSI) for Bitcoin over the past 14 weeks is at 26.
This is the lowest RSI since at least 2018, which shows that Bitcoin prices are too low right now.
Bitcoin's 200-week SMA, which is $22,350, has also been broken.
Both of these important signs show that now is a good time to buy Bitcoin.
But it's hard to know where the bottom of Bitcoin is.
Today, June 15, is the last day of a meeting of the US Federal Reserve.
Rates of interest are likely to go up next.
These could make the crypto market more volatile in the short term, but in the long run, they could help stop inflation and bring back some stability.
During a crypto crash like the one we are seeing in June, tokens with strong fundamentals have the best chance of staying around.
At the beginning of May, Terra Luna was one of the top 10 cryptocurrencies by market cap. The token was worth over $80 at the beginning of May, but now it's only worth $0.00005719.
After depegging from its $1 price, the algorithmic stable coin UST is now worth $0.007334.
It's clear that these tokens didn't have strong fundamentals. What cryptocurrencies should you buy in June 2022?
During the recent crypto crash, the stablecoin BUSD was one of the few things that did well.
BUSD jumped into the top 10 cryptocurrencies and is now in sixth place by market cap.
BUSD is the only stablecoin that is backed by US banks and has regular monthly audits. It is also the only stablecoin that is native to Binance, the biggest cryptocurrency exchange in the world by market cap.
BUSD is also the reason why the price of the reflection token EverGrow Coin just went up by 12 percent.
EverGrow Coin has a 14 percent transaction tax, of which 8 percent is given back to investors in the form of BUSD rewards.
Investors have been paid more than $37 million so far, and EverGrow Coin owners get BUSD rewards for every buy or sell order of EGC.
This means that investors are still making money while the crypto market is down.
EverGrow Coin can be a good buy in June 2022 if you don't know how to short-trade, day-trade, or buy up fast-rising altcoins to make a quick profit.