How The Crypto Crash is Making The Stock Market And Real Economies Feel Losses

How The Crypto Crash is Making The Stock Market And Real Economies Feel Losses

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The world saw the biggest crypto crash in the month of June, with prices falling by over 50%. This was the biggest monthly fall since the inception of Bitcoin. Several factors contributed to this crash. Firstly, there was a sell-off by institutional investors. These investors had bought into the hype and were looking to cash out while prices were still high. This common case of rug pull was the major cause of the crash of stable coins like Terra and UST in the month of May.

The global market cap fell to $870 Billion with Bitcoin crashing to $19,000 which is considered it’s an all-time low. The rate of BTC has been consistently falling over the last seven days and is aggregated to have fallen by 7.4 percent. But Bitcoin was not the only coin that crashed drastically, coins like Ethereum and Solana also decreased by 8 percent and 15 percent respectively.

Major Collapses

The world seems to have lost its faith in the crypto world for a while. With the market crashing and experiencing its worst low and stablecoins failing to maintain their stability, traders have been hesitant to play their cards at the moment of this big crash. More than 80,000 Bitcoin (BTC) investors have had their millionaire status revoked due to the crypto market downturn and have lost their hard-earned cash to the ruins.

This great crash has badly hit the big whales who have lost the majority of their money to bitcoin. Although the investors and traders aren’t the only ones who are badly affected by this crypto crash. France, Germany, Japan, and many more countries have legalized cryptocurrency. This legalization has led to the encouragement of its residents to invest heavily in the crypto world. But with the market crash, the paper millionaires of these countries have suffered a severe blow. This blow isn’t only to the millionaires but has also affected the economies of these countries and has led to a severe fall in the stock market. The world has lost approximately $1 Trillion of crypto value.

El Salvador was the first country in the world to legalize Bitcoin as a common form of payment. Nayib Bukele, the president of the country envisioned building a bitcoin city with the currency’s emblem festooned in the central square. El Salvador is reported to have supposedly invested around $100 million into bitcoin and has seem to have lost more than half of the hard-earned wealth of the country to the crash. This loss has badly affected this rather small country and has caused a major downfall to the economy.

Big crypto names like Voyages and BlockFi have filed bankruptcy, failing to emerge out of the crash. Although the loss of investors isn’t the only loss, people have even lost their jobs due to crypto projects struggling to stay up with the crash.  Earlier this month, Crypto.com announced the elimination of 400 jobs, while Coinbase revealed the loss of 1,100 jobs.

Will The Investors Come Through?

When it comes to investing in crypto, it is always important to remember that you should only invest money that you would be okay with losing. After all, the crypto market is notoriously volatile and there is always the potential for your investment to go up or down in value.

That being said, there are still plenty of opportunities to make money in the crypto space. One way to do this is by investing in altcoins, which are alternative cryptocurrencies to Bitcoin. While they may not be as well-known or as widely accepted as Bitcoin, they can still offer good returns on investment.

Another way to make money in crypto is by day trading. This involves buying and selling cryptocurrencies within a 24-hour period in order to take advantage of short-term price movements. Day trading can be a risky strategy, but if done correctly, it can lead to some impressive profits.

Many investors have made the mistake of betting big on crypto, only to see their investment plummet soon after. While it’s impossible to predict the future of the market, being smart with your investment will help you minimize your losses should the market take a turn for the worse, always look for new and upcoming projects that show promise. There are many small-time projects that have the potential to explode in popularity, so don’t miss out on them!

Takeaway

If you’re thinking about investing in crypto, be sure to do your research first and always remember to only invest what you can afford to lose. With that being said, there are still plenty of ways to profit from the ever-growing cryptocurrency market.

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