Bitcoin and Ethereum prices show significant losses this Monday, with BTC trading at $23.7k and ETH dropping nearly 16% to $1.2k. Current cryptocurrency prices are bringing the market back to January 2021, with the global market cap finally dropping below the $1 trillion level, currently at $965 billion.
Panic at the Market
There’s evident panic in the cryptocurrency markets as Bitcoin price is down over 24% and Ethereum price is down over 35% this week. The culprit behind the substantial bearish momentum is looming recession risks and the continuing rise of inflation.
Stock market prices are diving, the economy is on the verge of collapse, gas prices are rising, the pandemic sees no end in sight, and global political affairs remain tense. This is the perfect storm for a bear market that will likely continue pushing crypto markets down.
Since Bitcoin is closely following the price action of stock markets, which is in freefall, it’s no surprise that today is a rough day for the global economy. There seems to be no end in sight as stock prices continue to dive week after week.
The Fed is expected to raise interest rates by another half a percent this week, and the S&P 500 and Nasdaq continue to take a beating. While there’s bloodshed everywhere, the good news is that for those brave enough to buy the dip, now is an excellent time to keep a close eye on the market and potentially start to Dollar-Cost Average any long-term investments.
Terra 2.0 (LUNA) Loses Another 10%
The most talked-about altcoin, Terra 2.0 (LUNA), opened this Monday with another heavy 10% loss, currently trading at $2.40. There has been no news from either the Terra Luna team or the founder of the project, Do Kwon, since this weekend.
There have been accusations of Do Kwon selling billions of cryptocurrency before LUNA’s collapse, which the founder addresses in a series of tweets on Saturday. Since then, there hasn’t been any new information from Do Kwon or Terra Luna.
The good news is that Terra’s ecosystem continues to expand, with projects joining the ranks every day. With the current state of the crypto market, it’s practically impossible for Terra 2.0 (LUNA) to show any significant bullish momentum until BTC and ETH prices recover.
Metaverse Crypto Coins Take Steep Losses
Another sector in cryptocurrency, specifically Metaverse and NFT projects, also take significant losses today, with ApeCoin (APE) losing over 19% today and 45% this week, dropping from the second to the third-most valued cryptocurrency behind Decentraland’s MANA and The Sandbox’s SAND.
Decentraland holds its current level of $0.76 relatively well today, only dropping 3% in the past 24 hours. Unfortunately, SAND isn’t as lucky as it lost over 18% today and over 40% in the past week.
Once again, the good news with current prices is those looking to purchase virtual real estate in popular projects like Decentralnd, The Sandbox, and even those looking to buy land in ApeCoin’s Otherside can find some fantastic deals right now.
A plot of land in Decentraland currently costs 2.15 ETH ($2598), land in The Sandbox currently costs 1.52 ETH ($1836), and land in ApeCoin’s Otherside costs 1.75 ETH ($2114). There’s no doubt that now is a great time to keep a close eye on your favorite virtual real estate NFTs for those that have been itching to own digital land in the Metaverse.
Bear Market Spells Opportunity
Remember that for every seller, there’s a buyer. Investing is a long-term game spanning multiple years. Those looking to make a profit in under a year not only get hit with ridiculous capital gains taxes but also have significantly fewer chances of making substantial gains.
The fact that crypto markets are dipping so hard right now is an excellent opportunity to accumulate your favorite undervalued projects, whether Metaverse coins, DeFi projects, NFT collections, etc.
One rule of investing is to purchase assets on the way down and sell them on the way up, reinforcing that the best time to load up your crypto bag is in a tragic bear market.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any projects.
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