Although in the short term, such a plummet in value may have a negative impact, the crash will help those that survive to become even stronger.
And it also provides an opportunity for first time investors to get a slice of the action for a fraction of previous prices.
We are currently experiencing the biggest crypto crash in history, with the crypto Fear and Greed index having slipped into “extreme fear” category. However, it’s not all doom and gloom.
Coins such as Bitcoin, Ethereum and Solana gained in their prices in the last 24 hours. Equity markets, too, recorded some gains including Nasdaq, the S&P 500 and Dow Jones Industrial Average.
It’s worth noting that various coins, including Bitcoin, were heavily inflated in a bubble over the last two years, so a crash of this enormity was bound to happen. With investors dumping assets in response to high inflation and the semi-collapse of the Celsius network driving the downward spiral, I think only the best fundamentally strong crypto projects will survive this bear market, as it's proving to be.
This is a cleansing process of note as we believe between 80 to 90% of the crypto projects will not survive this period especially if Bitcoin falls below $20,000 again.
But, it also serves as a massive opportunity for many no-coiners to enter the crypto market for the first time ever.
Fortune favours the brave in crypto right now.
For newcomers deciding to dive into cryptocurrency investments, here are top tips on protecting your assets in case of a further crash:
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