Over the past few months, the crypto market has kept traders on their toes. Unfortunately, it hasn’t been the best year for popular cryptocurrencies as assets such as Bitcoin and Ethereum hit all-time highs. 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 presence. strong among traders around the world.
We at XPro Markets have gathered the latest data and the most important highlights of crypto market movements so far this year, so you can better understand what is happening to your crypto CFDs and why this volatility. Keep reading to find out more!
Q2 2022 Crypto Market Overview
- During the second quarter of 2022, Bitcoin fell 56%, its worst performance in a decade.
- A cumulative change of -$501.8 billion was recorded in the crypto market cap, falling to $337.5 billion.
- A record eleven-week decline led to a 67.4% decline for Ethereum in the second quarter. As a result, the cumulative market capitalization of Ethereum decreased by $265.79 billion, to $128.62 billion.
Currently, cryptocurrencies are holding up, trying to stay above average price levels. If you consider that in 2021 Bitcoin’s price had surpassed $65,000 and is now struggling to hold its ground above the $20,000 barrier, you can see how bad this year has been. tough for this trending crypto.
Main reasons why the cryptocurrency market is collapsing
- The effects of inflation: As prices rise across the board, people could withdraw their savings from non-essential investments – which for many include cryptocurrencies. The third quarter also heightened recession fears, making crypto traders even more skeptical when it comes to investing in such assets.
- Russian-Ukrainian War: In times of major geopolitical uncertainty, people tend to invest in safe, conventional, and always reliable assets. This has led to increased volatility in the cryptocurrency market, distracting traders from the challenge of cryptocurrency trading.
Will it ever come back up?
If you are a crypto CFD trader, you are probably wondering what you should do in these turbulent times. We have good news and bad news. The bad news is that you can never be 100% sure what will 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 better prepared when things go wrong. In every challenge, it is important that traders maintain their discipline and do not lose confidence in their skills. So what can keep you ahead of the markets? Patience – Practice – Perseverance.
Continue to improve your trading skills and learn ways to improve your trading strategies, while keeping up to date with economic events that could impact your trades.