In the trading year to date, a second crypto meltdown occurred in June 2022.
The fall of Terra Luna in May destroyed $500 billion in value from the cryptocurrency market. Nearly $400 billion had already departed the cryptocurrency market as of June 2022, the first time since January 2021 that this has happened.
Many cryptocurrency buyers could have believed that May 12 was the ideal day to purchase the dip. The price of Bitcoin then dropped from $40,000 to $28,000. The price of Bitcoin currently seldom rises over $20,000, so if you had purchased it at $28,000, your investment would have lost 30% of its value.
This raises the issue of whether it’s a good idea to purchase the dip during the upcoming second crypto crisis in 2022.
Why is the crypto market crashing again in June 2022?
While the depegging of UST from its $1 price may have contributed to the first cryptocurrency meltdown, the primary driver of this second fall is macroeconomic in nature.
Following a study last week, the Consumer Price Index (CPI) estimated inflation at 8.6 percent in May. All markets were rattled as a result, with the S&P500 entering a bear market and the Dow Jones Industrial Average dropping 900 points.
Due to inflation being at its greatest level since 1981, the Nasdaq composite also decreased by 4.68 percent.
The price of Bitcoin dropped from $27,000 to $22,000 on Monday, June 13. The price of bitcoin dropped further in June, reaching a low of $22,180 on June 15.
The lending and staking network Celsius frozen around $11 billion in assets on Monday as a result of declining cryptocurrency prices. The biggest cryptocurrency trading platform in the US, Coinbase, said on Tuesday that it was firing 18% of its full-time employees.
In June 2022, cryptocurrency will plummet once again due to unfavorable market circumstances and gloomy crypto news.
At the present Bitcoin price, should you purchase the dip?
Trading indications seem to be in Bitcoin’s favor.
Over a 14-week period, the relative strength index (RSI) for bitcoin is now at 26. This shows that Bitcoin is now oversold since this is the lowest RSI since at least 2018. Additionally, Bitcoin has dropped below its 200-week SMA, which is now at $22,350.
These two important signals indicate that Bitcoin is a good investment right now. Where the Bitcoin bottom is, however, is difficult to determine.
Today, June 15, the US Federal Reserve’s meeting comes to a finish. Increases in interest rates are anticipated to follow. These could increase volatility in the near term, but they will eventually help to stop inflation and restore some stability to the cryptocurrency market.
What other digital currencies should I purchase in June 2022?
The greatest chances of surviving through a crypto meltdown like the one we are seeing in June are for coins with solid foundations.
At the beginning of May, Terra Luna was one of the top 10 cryptocurrencies by market cap; now, the token is worth $0.00005719, down 99.99 percent from its May price of almost $80. After depegging from its $1 price, the algorithmic stablecoin UST is presently worth $0.007334.
What cryptocurrencies are a decent purchase in June 2022 given that these assets clearly lacked solid fundamentals?
One of the success stories of the current crypto meltdown is the stablecoin BUSD. BUSD climbed into the top 10 cryptocurrencies and is presently ranked sixth in terms of market capitalization. The only stablecoin that is supported by US banks, has regular monthly audits, and is a native stablecoin on Binance, the largest cryptocurrency exchange in the world by market cap.