Bitcoin is down, AGAIN! 

What caused the market to crash?

The market of cryptocurrencies is a very volatile place and this time it has dropped to its lowest point of this year. It went from $1 trillion to $977 billion real quick. With a drop of 12 % since yesterday (June 13). 
 

Every top coin that was once worth a fortune, now it has lost half of its own value. 

 

Market’s crash was provoked by a massive sell-off by investors. The news about inflation is making investors stay away from risk assets and cheerlessly Bitcoin is slowly becoming considered as a risk asset, where at the beginning of 2022 was perceived as a ‘safe haven’. 

Another reason for the market crash was the news that the crypto lending service Celsius announced while investors are doing a sell-off. They paused all withdrawals just because they reported that the “market has extreme conditions”.

Stating: “We are taking this necessary action for the benefit of our entire community in order to stabilize liquidity and operations while we take steps to preserve and protect assets.”

This event didn’t work out well for crypto traders and added fuel to the stability of the overall market. 

Bitcoin is trading below $21.000, so what is next?

Bitcoin is down 15% over the last 24 hours, falling to about $21,000, its lowest value since December 2020. The ultimate low was $20,950.82.

At another point bitcoin fell about 17% to trade around $22,764. Some of those losses were later recovered, and around 4 p.m. on Wall Street bitcoin stood at $23,351.

Over the last weeked from the crypto market $200 billion disappeared.

And Bitcoin had dropped around 80% from its last record high. Currently, it is down around 67% from its last all-time high which it hit in November.

Experts suggest that it will experience much lower prices in the next month or two.

Bitcoin was under pressure from inflation and now the situation with Celsius, the leading crypto network triggered the Bitcoin crash once again.
 

Is Bitcoin a risky asset?

A risk asset is an asset that is considered as extremely volatile in the rather unpredictable markets. 
 
Bitcoin, contrary to its reputation, has been somewhat stable up until recently. 

Events like inflation, the stock markets trend and most importantly Fed monetary policy influenced the movement of Bitcoin price. 

Bitcoin is not considered a "safe haven" for investors anymore, because compared to 2017-2018 it lost a huge portion of its value.

But some speculations that are made for 2022 say that it might hit a low of $10.000 and a high value of $100.000. Overall, the future is not easily predictable considering the standing  point of the market today. 

Is now the right time to buy Bitcoin?

This question is one of the most asked today and during unfortunate events like this one.
There is a principle in trading called ‘buy the dip’. - A strategy where investors believe that buying a crypto asset at a low price point will bring them a reward in the future. 

This is a risky investment, prices might eventually return to their original levels but a loss should also be expected.

So, as a trader or investor who is committed to ‘buying the dip’ you should make a decision on a particular amount of money you’re comfortable with using to buy Bitcoin or any other asset and not worry about in the next year or two. 

  

Conclusion

Bitcoin as one of the most popular cryptocurrencies lost its value, due to unfortunate events. 

Such as high inflation and Celsius pausing the withdrawal of Bitcoin. In times like this it is important to step aside and wait for the market to calm down.
Trading is risky but with the right broker by your side there, you have unlimited support and a mentor. Keep in mind the cryptocurrency market, this might be the right time to consider CFD trading. CFD trading allows you to speculate on the price movement where you are still able to potentially earn profit. 

Start trading today