Here’s Why the Bitcoin Crash Might be GOOD For Investors!

Elnaz Sarraf
Coinmonks
7 min readJul 7, 2022

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In June of 2022, the crypto market saw one of its biggest crashes in recent history. Bitcoin and almost every other cryptocurrency saw their lowest prices in over a year, and this understandably led to a lot of panic in the market. However, there are also some people that believe this crash might just be good for future investors.

Before I move on to how this current crash might help investors, let’s take a look at why the crash happened in the first place. Inflation in the U.S was at its highest point in decades throughout 2022, something that only got worse once Russia invaded Ukraine. In response, the U.S Federal Reserve decided to hike up interest rates by 0.5%, which is the biggest hike that the US has seen in almost 2 decades. This has a disastrous effect on cryptocurrencies, including Bitcoin. Higher interest rates mean that people will be less likely to invest in volatile assets like crypto, which is why many investors started to sell as fast as they could.

As a result, the entire crypto market crashed. Bitcoin, Ethereum, and Binance all lost 40% of their value. Other cryptos weren’t so lucky, and they crashed so hard that they had to be delisted…

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Elnaz Sarraf
Coinmonks

Founder & CEO @roybirobot @roybiverse | TIME Best Invention | Metaverse, NFTs & Web 3.0 Enthusiast & Investor| Forbes Technology Council