Crypto Market Crash: Is It The Right Time To Buy The Dip?

Crypto Market Crash: Is It The Right Time To Buy The Dip?


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As we all know, the cryptocurrency market has been rather unpredictable lately. It seems like just when you think you have it figured out, the market changes. The crypto market came crashing down in May and June. However, this leaves the investors wondering if, is this the right time to buy?

The crypto market has been volatile as of late. In the month of May 2022, the world saw Luna-Terra and UST the two of the most stablecoins coming down to a crushing blow.  Teraa-Luna fell to more than 97 percent, while UST too failed to maintain its 1:1 with USD and traded below $0.6131. By the end of June, the crypto market has almost lost over $1 trillion with the majority of the big whales saying goodbye to the market.

Crash of The Crypto Market In June 2022

The crypto market is in the midst of a significant crash, with prices plunging across the board. There are a number of factors that could be driving this sell-off, including concerns about regulation, security breaches, and simply too much hype around the sector.

Major coins like Bitcoin and Ethereum have all dropped significantly with Bitcoin reaching its lowest since 2020 and is down by $20,000. Ethereum too fell by 11 percent and stooped by $1000.

Investors have now started to withdraw their hands and money from the market resulting in an increase in the already existing inflation scenario. With the US Federal Reserve increasing its interests, recession, and the Ukraine-Russia war, the crypto market is expected to fall more as mentioned by the experts.

This crash in the market came after a heavy blow to the Luna-Terra in the month of May. But with the rise of interest by 75 basis points, the market has been experiencing one of the biggest rug pulls of its time. This interest rate laid out by the US Federal Reserve is the highest in the past 30 years and has worried the most prominent of investors. The market is currently running at a loss of $1 Trillion.

How Effective is “Buy the Dip”?

With the crypto market experiencing its biggest fall in recent times, investors have been hesitant to spend in the market again. But with this hesitance, there is also a huge lot of people are interested in buying the dip just like the old saying. The idea behind that is, to buy the coin at its lowest and to reap its benefits once they rise again. Although there is nothing new in this strategy and it has been used by market explorers for decades now. But an age-old idea isn’t always the right choice, let’s understand if it’s the right time to buy the time.

The global market for cryptocurrencies is volatile which makes it hard to predict how much people will be willing to pay, so crypto investment might be a risky endeavor. Volatility may mean you’re taking a big risk by investing in this volatile market. The price of a coin could rise again or fall. If the price drops further than you invested, your investment could be underwater.

The current stock market dip could come back as it has in the past, and prices will get back to pre-dip levels. However, they may not recover as we don’t know if this pattern will repeat itself. Price falls are difficult to predict, but they have happened before. If history is any indicator, we might be able to bounce back.

The prices of cryptocurrencies are highly unpredictable in nature and with even stablecoins like Luna and UST falling down from grade, it has been more difficult than ever. Bitcoin prices often show seasonal patterns. And one downside of Bitcoins is that past performance is not an indication of future results.

What Do The Experts Say?

Even though investing right now is a risky endeavor and almost impossible to predict, an investor can follow advice from industry experts to lower his risk of losing out on money.

Experts advise people to buy BTC or ETH each month if they are committed to “buying the dip”. Moreover, it should also be kept in mind to look into it as a long-term investment and not worry about the recent losses due to the fluctuations in the market. It is also important to place your bets on different coins to lower the risk of losing all your money with a single coin.

If you carefully evaluate your risk tolerance and invest smartly, now can be the perfect time for you to place your bets. Be prepared for severe fluctuations in the market, and you are good to go.

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