Why Is Crypto Market Down Right Now: How To Survive The Current Deep Correction Of The Crypto Market?

The middle of 2022 was a very stressful period for the cryptocurrency market. Most experts and crypto-enthusiasts are sure that the new crypto-winter has come early, and now a prolonged recession awaits us. We have analyzed many indicators and forecasts to talk about why crypto market is down today and to protect your crypto.

This article contains a lot of valuable recommendations, an overview of the current situation, forecasts, and an overview of tools to save crypto savings and earn money.

Why Is the Crypto Market Crashing Right Now?

Crypto-winter 2022 began in April, when Bitcoin rapidly lost value from its local peak above $50,000. This spring coincided with many geopolitical risks and a global economic recession.

As global inflation rises and stock markets fall, demand for cryptocurrency decreases, as it is a risky asset category.

From April to May 2022, the value of Bitcoin and most altcoins fell by about 40%. In particular, several events in May triggered even more massive sell-offs in the crypto market. These events included the collapse of the Luna and the UST algorithmic stablecoin, which undermined confidence in the asset class.

Accordingly, non-professional investors began to leave the market, and newcomers risked their last savings.

Many cryptocurrency projects with insufficient liquidity also underwent a purge. This has prompted investors to take a closer look at what they will invest in.

As of mid-2022, Bitcoin is worth about $21,000. That’s a drop of more than 75% since the beginning of spring of this year. Such a phenomenon can be marked by a crypto-winter, which we have already experienced three times (2011, 2014, 2018). Before that, the bear market took place for up to half a year and more often in winter. However, it starts at the beginning of the year and runs through two calendar seasons — spring and summer.

What will happen next? Experts and market participants have an opinion on this.

What Should Crypto Investors, Traders, And Crypto-enthusiasts Expect?

Crypto-winter has always caused panic among some investors and users. However, each time the bear cycle ended with even more rapid growth. Economic difficulties and geopolitical tensions now accompany the recession. In reality, these conditions are more favorable for the development of the blockchain industry.

The financial crisis is prompting many to diversify their assets and invest not only in inflationary dollars or bonds, but also in other asset classes. Cryptocurrency is among them. Make it easier by following a few helpful tips to protect your crypto.

According to forecasts, the cryptocurrency market recession could last until the end of 2022. Therefore, most users have time to optimize their savings and allocate crypto assets according to their perspectives. Many are also looking to buy more coins, as the bear market is traditionally the best investment time.

The current situation is favorable for the crypto market, making it less volatile but more liquid. Speculators are gradually leaving cryptocurrency exchanges. Their place is taken by institutional investors and individual owners, who use coins for settlements and long-term investments.

In combination, this may provoke a rapid growth of cryptocurrency market capitalization, exceeding the peak in 2021.

How to Protect Your Crypto?

Most cryptocurrency holders are interested in preserving and increasing their savings during a prolonged bear market. There are several ways to securely store, exchange, buy and sell cryptocurrencies during a crisis.

However, before moving on to an overview of such a tool, let’s look at a few critical recommendations for cryptocurrency holders during a recessionary market:

• Minimize the use of leverage and cryptocurrency CFD (Contract for Differences) trading to reduce risk in trades;
• Diversify your cryptocurrency portfolio by identifying about 2–3 of the most promising tokens;
• Use a cryptocurrency vault with instant access 24/7;
• Choose the crypto wallet with the lowest fees and the ability to withdraw or buy assets in a few clicks instantly.

These recommendations reduce the risk of losing most of your portfolio due to the crypto market crashed. Despite the crypto industry’s positive outlook, numerous risks are still associated with a single token crash. It could be an algorithmic Stablecoin or any other unstable coin. Accordingly, an anonymous custodial crypto wallet with 24/7 access and a simplified KYC system is one of the best tools to keep a diversified portfolio, replenish it and withdraw funds profitably.

One of the main tools of a crypto investor and trader is a wallet for storing, buying, exchanging, and withdrawing cryptocurrency. It is perilous to trade futures or use high leverage cryptocurrency CFD trading in a bear market.

One versatile solution for crypto enthusiasts is Trustee Plus. It is an innovative mobile app for all types of cryptocurrency transactions.

Some advantages of Trustee Plus:

• Fast smartphone login and 24/7 access to assets
• One-click exchange, buy and sell of cryptocurrencies;
• Support for debit bank cards;
• Reduced fee for exchanging and 0% fee for transfer and withdrawal;
• Minimum balance for investments below $10;
• Absolute security of assets.

During a deep recession, allocating assets and accumulating the best coin, including Bitcoin, Ethereum, Solana, and many others, is best. Stay optimistic and reduce the risk of losing crypto savings by using innovative tools to store, exchange, buy and withdraw coins on favorable terms.

Conclusion

Currently, the cryptocurrency market today in a deep recession, marked by Bitcoin falling more than 75% in value and a drop in total market capitalization to $800–900 billion for the first time since 2021. However, the bear market is a unique opportunity for investors and crypto-enthusiasts to build their assets. After all, there is no doubt about the prospects for blockchain technology and the imminent introduction of blockchain-based Web3. All of this will provoke increased interest in cryptocurrency and numerous projects based on Ethereum 2.0.

Accordingly, the bear market could move to grow in as little as 6–12 months. Therefore, using convenient crypto neobank like Trustee Plus is the best time to enter the market actively.

This is the first cryptocurrency bank to offer a full range of financial services with zero fees. It will probably soon become a real breakthrough in crypto-fiat banking for users from all over the world.