These Were The Worst Performing Cryptocurrencies Of The Past Week

Beyond the dropping trading tickers and bottoming out red graphs across the crypto board: what does it all mean? Business Insider explains that keeping a close eye on weekly winners and losers helps investors understand trends and identify coins gaining traction. Lesser-known cryptos are higher-risk investments. They can produce massive losses or generate significant gains in a short period because they are extremely volatile. The crypto crash and its current downward trend are not isolated. They are influenced and driven by the global and U.S. economies that are facing economic slowdowns triggered by a post-pandemic recovery, inflation, rising consumer spending, rise in gas prices, the war in Ukraine, and supply chain issues. These factors are all contributing to the drop in Nasdaq and S&P 500, affecting tech stocks, per Wall Street Journal, and causing the domino effect on crypto.

Market confidence and investor perception of crypto are also factoring in. Many investors have decided to cash out or move their digital assets to safer portfolios, at least until the storm settles. Taylor Carmichael, writing for the Motley Fool, says that even the 2022 crypto crash in time will look like a tiny wiggle in the chart. While it may amount to trillions of dollars lost, Carmichael is optimistic. He reminds investors of the many crashes the market has seen in the past decades, each one followed by a recovery. As of today, Bitcoin and Ethereum are down year-to-date by 36.68% and 46.43%, respectively.

Source link

Leave a Comment