June 2022 crypto crash has being one with major market threat. Thinking if buying the crypto dip is a good idea is a question that has crossed the mind of many.
Recalling the Terra Luna crash that collapsed and wiped over $500, current market evaluation drops below $1 Trillion.
A lot of crypto investors may have thought that May 12 was certainly the right time to consider buying the dip. However still, the price of Bitcoin has already began falling from $40,000 down to $28,000. Imagine buying then?
Sadly still, if you had considered buying at $28,000, you would be 30% down in your investment as the Bitcoin price barely holds above $20,000 today. Once again asking yourself, is buying the crypto dip now safe?
Why Buying the Crypto Dip?
Research pointed the reason for the first crash. While the first crypto crash was arguably caused by the depegging of UST from its $1 price, this second crypto crash is largely macroeconomic.
The Consumer Price Index (CPI) put inflation at 8.6% in May following a report last week. This spooked all markets, with the Dow Jones Industrial Average falling 900 points and the S&P500 entering a bear market.The Nasdaq composite also fell 4.68% due to inflation being at its highest level since 1981.
Monday, June 13, Bitcoin price collapse from $27,000 to $22,000. Bitcoin price losses continued into June with Bitcoin trading at a low of $22,180 today. On Tuesday, the United States’ largest crypto trading platform Coinbase announced it was laying off 18% of its full-time staff.In some other news, SEC United State has already mentioned carrying out investigation as the crash maybe due to insider trading.
Buying the Crypto Dip as this time is a good investment and also a risky one. It’s very important you make research as the market movement is unpredictable.
