Cryptocurrency is an ever-booming market. The tokens have been gaining immense attention from investors around the world.
Bitcoin 2009 is the first crypto token to enter the global market. The primary purpose of this token was to enable easier transactions between peers. The virtual currency moves from one digital account to another. Users can buy goods and services using this token. Considering the working model and ease of operating it, Bitcoin soon became an investment. The price of tokens increased from $1 to $123 in a short span. Also, many investors purchased this token as a medium of storage. Along with Bitcoin, other cryptos also made their way into the investment market. Today, there are more than 14k+ cryptocurrencies traded daily. The total market volume of these investments touched more than $3 trillion.
Market performance of cryptocurrency in the past
The global pandemic and the lockdown worked to cryptos’ advantage. There has been a more than 20% increase in crypto investments during this period. Many young investors explored this investment model and also gained an advantage. Other than traditional crypto assets, many young people made their way to crypto gaming. Crypto tokens helping to create gaming avatars attracted many investors. The ability to create crypto rewards as a result of gaming also attracted many young investors.
During this period, the prices of each crypto token were traded at a high volume. The price of the popular token Bitcoin touched an all-time high. The token was traded at $65k making it a popular choice of investment. Many early investors in Bitcoin were able to generate more than 100% of revenue during this period. Additionally, other tokens including Ethereum, Shiba, and Polka also made remarkable progress.
Market performance of cryptos in 2022
Following the suite, the year 2022 started with an impressive performance. The first three months of the year were profitable with most tokens being traded fairly. However, the situation changed in the second quarter of this year. The ongoing economic crisis and changes in dollar value are a few reasons. Many tokens dropped in price. Other than the crypto market, other investments like stock, gold and other assets faced a crisis.
Popular crypto tokens including Bitcoin, Ethereum, and Polka prices fell sharply. Bitcoin traded at an all-time low of $20k per token. The prices are predicted to reduce further down. Investors are wondering if they should hold their investment or let go to avoid further losses. Terra Luna, the popular stable coin was wiped completely out of the investment market. There are other tokens also expected to face a similar situation.
Total crypto market continues to reduce
Yes, as mentioned above in the article the total market volume of crypto was at $3 trillion. However, with the ongoing crisis, there is a massive change here. The market volume has reduced from $3 trillion to less than $2 trillion. As we speak, the crypto market is continuing to evolve reducing to $1.2 trillion. Compared to the previous week’s analytics, the market has reduced by more than 7%. This is worrying with many investment experts trying to study sustainability.
The only feel-good factor here is the involvement of government agencies. While cryptos have never been regulated, this alarming situation has helped. Many government agencies feel their need to involve to avoid further losses. The US federation has guaranteed that the country is looking at options to tighten inflation. The US Dollar index has touched its highest value in the past week.
These regulatory authorities are also tightening how exchanges can operate in each country. The US government has reached out to Binance to share details of all investments. It will allow the government to gain better input on investments used for money laundering. Also, the regulations around crypto exchanges are highly favorable to investors these days.
The total crypto market has reduced to $970 billion. Many popular tokens including Bitcoin and Ethereum are trading at 7% lesser prices. There are also a handful of alternate coins that are being traded at 13% lesser. Many investors are looking at opportunities to reduce further losses. They are willing to either sell their holdings or stop additional purchases.
The crypto market is always a high-risk investment. Learn more about crypto decentralized bitcoin unique attributes.
