The cryptocurrency market has been crashing since November 2021. Bitcoin and Ethereum fell from their respective all-time high prices of $69,700 and $4,850. Despite all the negative sentiment in the market, many other crypto enthusiasts are looking forward to the end of this dark tunnel. Are there any benefits to this crashing crypto market? In this article, we’re going to talk about the top 3 reasons why is the crypto crash good.
Crypto Crash Benefit #1: Crypto Scams are Liquidating
When the crypto crash started to happen, most crypto companies suffered immensely. Coinbase is one of the known crypto companies that lost more than 90% in valuation. The company had to fire a lot of employees and cut costs significantly to stay afloat. This event is not so good for the crypto community.
However, many other crypto projects that are mostly built from hype or solely to scam crypto newcomers are being washed out of the crypto sphere. This happens due to liquidity problems or the lack of new joiners who get scammed. The crypto crash helped remove bad crypto projects, and only the solid and strong ones survive.
#2 Crypto prices have been Inflated for a long time
Ever since 2019, the crypto market started its Bullrun and increased in prices without any sign of adjustment. This phenomenon created a “bubble” that was bound to pop. This pop started back in November 2021, when prices could not maintain their high valuations, and a heavy selling pressure started as investors started to panic. This led the entire crypto market to collapse.
Adjustments without any negative connotations are always a good thing, as they allow prices to “breath”. This will let prices go back down towards the normal average uptrend.
#3 Cheaper Opportunities to Buy Cryptos
If you wanted to dip your toes in the crypto market prior to the crypto crash, you would’ve spent around $69,700 per 1 Bitcoin, or $4,950 per 1 Ethereum. Besides buying at inflated prices, most investors would miss out on the big gains that could’ve happened if they bought cryptos at lower prices. With this crypto crash, investors have an opportunity to buy those very same cryptos at a much cheaper price.
Bear in mind that it is crucial to do a proper technical analysis when evaluating where and when to buy. Make sure to follow us on Google news to always stay up to date with the latest price predictions 😉