How will the cryptocurrency market collapse in the first half of 2022?

The most expensive moment for major cryptocurrencies was observed at the end of 2021; in November, the price of bitcoin reached $69,146. But in the first half of 2022, a rapid decline began, and since then it has continued.

How did cryptocurrencies develop between January and June 2022?

Below are the top cryptocurrencies to keep an eye on in the first half of 2022:

The decline among the leading cryptocurrencies was evident. The price of BTC fell by $26,000 (56% decrease), while this price decreased by 70%, from $3.6 to $1.1,000. Similar “places” were seen in the BBB where the balance coin dropped to $219 by 57%.

Worst “crypto winter”: SAND price fell by 82 percent, AXS by 85%, FLOW by 83%, MOON by almost 100%, DOGE meme coin by a factor of ten, and litecoin by a factor of five times.

We have found growth leaders. In just three days in March, GMT (the token of the STEP project) increased its high in the first six months by more than 140%. The Green Metaverse token has increased by 605% and the Binary x gaming platform token has increased by approximately 142%. The currencies NEAR (growth by 10 times) and Solana (+76%) turned out to be in opposition to the market.

The current “cryptosystem” has become one of the “most problematic” due to the close relationship between the crypto market and conventional stock markets under US rule. Washington’s monetary policy, record inflation, lack of decentralization in the cryptocurrency industry, and changing investor interest in traditional assets have all contributed to a number of adverse outcomes.

Nearby houses were also damaged. For example, more than ten major trading platforms, including Coinbase, Gemini and by bit, have laid off thousands of employees. While many crypto firms and exchanges have acknowledged joining the anti-Russian sanctions, P2P digital lending services are seeing a surge of new consumers as conditions are often better than banks.

It is important to note that bitcoin has a far greater impact on people’s lives than most people realize. For example, in August 2022, Expobank provided a regular loan to a client who was an entrepreneur and secured the loan with Waves tokens. This is a first in Russia, but it may stimulate further work in the banking industry using clients’ cryptocurrencies.

What will happen to the bitcoin industry after this?

The peak of the “crypto-winter” is indicated by more than a twofold decline in the market value of cryptocurrencies, a decline in trading volumes and a 50-60% drop in major coins on average. Experts expect an increase by 2024, though the industry is cyclical. Since it is now possible to get credit, store NFTs and run games, among other things, this may contribute to even more cryptocurrencies.

On the one hand, many investors lost interest in bitcoin when the “Fear and Greed Index” reached 45 points out of 100. However, it also provides an opportunity to build up assets by buying them at a low price.

According to some experts, the bitcoin market will reach its lowest point in the fall of 2022. You need different conditions in order to develop:

1) Reduced risks associated with inflation and the Federal Reserve’s ability to control inflation; 2) A shift in U.S. monetary policy; 3) A strengthening of the stock market, which would allow investors and traders to buy U.S. indices more aggressively.

Meanwhile, there are optimistic predictions. For example, according to Finder, the price of bitcoin could reach $106,000 by the end of 2025 and triple in value next year. Therefore, there is no need to discuss the devaluation of the cryptocurrency market.

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