During the last few months, the crypto market has been keeping traders on the edge of their seats. Unfortunately, it has not been the best year for popular cryptocurrencies, as assets such as Bitcoin and Ethereum have reached record-breaking lows. However, what seems to keep traders invested in maintaining their trading positions in the crypto market is that despite the extreme volatility experienced in 2022, the booming crypto market still manages to have a solid presence among traders around the world.
At XPro Markets, we’ve gathered the latest data and most important highlights of the crypto market’s movements so far this year, so you can get a better understanding of what is happening to your crypto CFDs and what are the reasons behind this volatility. Keep reading to find out more!
Crypto Market Overview Q2 2022
- During the second quarter of 2022, Bitcoin drops 56%, its worst performance in a decade.
- A cumulative change of -$501.8 billion was recorded in crypto market capitalization, falling to $337.5 billion.
- A record decline of eleven weeks led to a 67.4% decline for Ethereum in Q2. As a result, Ethereum's cumulative market cap declined by $265.79 billion, to $128.62 billion.
Currently, cryptocurrencies are holding on, trying to stay above average-price levels. If you consider that in 2021 Bitcoin’s price had surpassed 65,000 USD and now it is struggling to maintain its ground over the 20,000 USD barrier, you can understand how challenging this year has been for this trending crypto.
Top Reasons the Cryptocurrency Market Is Crashing
- The effects of inflation: As prices rise across the board, people might be pulling their savings from non-essential investments - which, for many, include cryptocurrencies. Q3 also enhanced recession fears, making crypto traders even more sceptical when it comes to investing in such assets.
- Russia-Ukraine War: In times of major geopolitical uncertainty, people tend to invest in safe, conventional, and consistently reliable assets. This has resulted in increased volatility in the cryptocurrency market, turning traders away from the challenge of crypto trading.
Will it ever go up again?
If you’re a crypto CFD trader you’re probably wondering what you should be doing in these turbulent times. We’ve got good news and bad news. The bad news is that you can never be 100% sure about what’s going to happen to the markets in the future, as every economic event can impact your assets.
The good news is that there are ways to be more prepared when things go sideways. In every challenge, it’s important for traders to maintain their discipline and not lose confidence in their skills. Therefore, what can keep you one step ahead of the markets? Patience – Practice – Perseverance.
Keep boosting your trading skills and discover ways to enhance your trading strategies, while also staying up to date with economic events that could impact your trades.
