Worst Things Happening in 2022 in the Crypto Space

[Mika]

The year 2022 was not very good for the crypto space. The crypto price that started falling in November 2021, continues falling in 2022 and at one time Bitcoin went below 20K, the lowest price in the last 3 years. The bearish crypto market wiped out over 1 trillion dollars from the market. Crypto giants like Binance and Coinbase lost money and their CEO lost billions of dollars.

The collapse of stablecoin Terra Luna was another worst thing to happen in 2022. About 98 percent of investors lost money. It is estimated that this caused over $60 billion loss.

Then there is the bankruptcy of Celsius Network, a crypto lending, and saving platform. The company has filed a bankruptcy case in court and this could cause 1.7 million users of the platform to lose their investment.

A lot of rug pull is also happening in 2022, and interestingly most of these rug pulls are happening with NFT projects. For example, Animoon, an NFT project based on Pokemon, rug pulled and the creators took away $6.3 million

 

[Shaf]

Cryptocurrency is relatively new and NFTs even more so. A lot of innovations are also taking place in both fields some of which despite their usefulness, have their flaws. This is one of the major reasons why people have lost so much money last year.

According to analysts too, oat people got into crypto at the height of a bull run, where coins do up to 10x, 100x, 1000x returns on investment. Without previous knowledge of how things run and following the hype that comes with such profits, many of us did not take into account risk management techniques to safeguard our Oney.

While the blame of the crash is on cryptocurrency itself, a major contributor to this is the market situation worldwide. A lot has happened that has made things unfavorable for stock, Fred and crypto markets, from the Covid pandemic, to the invasion of Ukraine by Russia, increasing inflation and interest rates are all major reasons that prices fell so steeply and fast. They will need to be rectified, if not fully the partially for things to.start going back to normal.

 

[Sotherefore]

That is one of the characteristics of cryptocurrency and people should not be surprised about it because it is a volatile asset and we have to expect that most of the time since it deals with demands and supply.
I don't know the actual reason why it has to drop so much because this year I was not really expecting the price of bitcoins to go that low because to me I believe that every year more people are coming into the crypto space and as a result of that we shouldn't see the price of bitcoins crashing from $69000 to 20,000 dollars. Completely beyond what we could not even imagine.

The present bearish movement in the market is what a lot of people are concerned of because it has affected so many people especially heavy investors . We are just hoping that everything returns back to its original price .