The cryptocurrency market is trading at its lowest and conditions for the current market are getting worse! Bitcoin at such times has shown resilience and trying to stay stable at around $27,000 compared to altcoins. (Report as of 12 June 2022)
Altcoins such as Ethereum, Binance coin, Solana, Cardano, Dogecoin and all other coins are forming their all time lows and this trend seems to worry a lot of investors and traders losing their confidence.
This is due to current economic factors moving the market towards the negative side with rising inflation, interest rate hikes by U.S Feds, and absorbing liquidity of money from the market.
June started with people selling off their high-yield capital assets (such as Stocks and Crypto coins), and this sell-off pressure is mounting day by day as we approach on 14th and 15th of June this coming week.
From the current scenario, things seem more worrying for the short term, and the investing wisdom anticipates more interest rate hikes from the U.S Feds by 50 basis points (by 0.5%, climbing from 0.75% to 1%, 1.25% or above)in the upcoming meeting of 14th and 15th June.
This makes the crypto market and equity market fall lower, and for all traders and investors, this could be a mental test of staying calm and not panicking if worse things happen.
This is evident as on June 10 and 12, CPI report from U.S Feds reported the highest inflation rate around 8.6% in the last 40 years. If this rising inflation rate and Russia Ukraine War remain constant, the economy is doomed to fall its rock bottom.
What to do if the market gets worse?
As a crypto investor and technical analyst, it hurts more when the market is constantly going down and common people lose confidence in trading into capital gains.
At such times, being patient and mentally prepared to hold and reserve your savings is the strongest approach possible. Selling your investments at a loss is not an option as it will ruin the portfolio.
“Being optimistic is the key at such times and have faith in the long term.”
When will the market recover?
It’s uncertain as of now to predict the recovery of the crypto market and overall economy. As an analyst, waiting and watching the movements and upcoming news is the way to foresee the future that still dangles in the turbulent air.
For the market to recover, the inflation rate should fall to normal, and the supply flow of commodities should be restored at a normal rate. Meanwhile, crypto coins will go some updates and get stronger for the next all time high.
Stay Strong and be prepared to face the volatility and dumps.
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