June 2022 has seen a second crypto crash in the trading year to date.
Back in May, the collapse of Terra
Luna wiped $500 billion from the crypto market. So far in June 2022 nearly $400
billion has left crypto as the industry market cap fell below $1 trillion for
the first time since January 2021.
Many crypto investors may have thought
that May 12 was the right time to buy the dip. Back then, the Bitcoin price has
fallen from $40,000 down to $28,000. But if you’d bought at $28,000, you’d be
30% down in your investment as the Bitcoin price barely holds above $20,000
today.
All this begs the question – is this
second crypto crash in 2022 the right time to buy the dip?
Why is the crypto market crashing
again in June 2022?
While the first crypto crash was
arguably caused by the depegging of UST from its $1 price, this second crypto
crash is largely macroeconomic.
The Consumer Price Index (CPI) put
inflation at 8.6% in May following a report last week. This spooked all markets,
with the Dow Jones Industrial Average falling 900 points and the S&P500
entering a bear market.
The Nasdaq composite also fell 4.68%
due to inflation being at its highest level since 1981.
Monday, June 13, saw the Bitcoin price
collapse from $27,000 to $22,000. Bitcoin price losses continued into June and
June 15 with Bitcoin trading at a low of $22,180 today.
As a knock-on effect of falling crypto
prices, the lending and staking network Celsius froze over $11 billion in
assets on Monday. On Tuesday, the United States’ largest crypto trading
platform – Coinbase – announced it was laying off 18% of its full-time staff.
The bearish crypto news combined with
bearish market conditions is why crypto is crashing once again in June 2022.
Should you buy the dip at the current
Bitcoin price?
Trading indicators are arguably
positive for Bitcoin.
The Bitcoin relative strength index
(RSI) over a 14-week view is currently at 26. This is the lowest RSI since at
least 2018 and indicates Bitcoin is oversold at present. Bitcoin has also
fallen past its 200-week SMA which is at $22,350.
Both of these key indicators suggest
Bitcoin is an attractive buy right now. However, it’s hard to tell where the
Bitcoin bottom is.
The US Federal Reserve is holding a
meeting that ends today, June 15. Interest rate increases are expected to
follow. These could in the short term create more volatility but in the
long-term help to curb inflation and bring some stability back to the crypto
market.
What other cryptos are a good buy in
June 2022?
During a crypto crash like we are
seeing in June, tokens with strong fundamentals have the best prospects of
survival.
Terra Luna was a top 10 cryptocurrency
by market cap at the beginning of May – the token is now worth $0.00005719
after falling 99.99% from a price of over $80 in May. The algorithmic
stablecoin UST is currently worth $0.007334 after depegging from its $1 price.
These tokens evidently lacked strong
fundamentals – so what cryptos are a good buy in June 2022?
The stablecoin BUSD has been one of
the success stories of the recent crypto crash. BUSD jumped into the crypto top
10 and is currently at 6th place in the market cap rankings. BUSD is the only
stablecoin backed by US banks, with regular monthly audits and it is native
stablecoin in the world’s biggest cryptocurrency exchange by market cap –
Binance.
BUSD is also behind the current 12%
price spike in the reflection token EverGrow
Coin.
EverGrow Coin charges a 14%
transaction tax with 8% distributed as BUSD rewards to investors. More than $37
million has been paid to investors to date – and EverGrow Coin holders earn
BUSD rewards for any buy or sell order of EGC. This means investors continue to
earn passive income during the current crypto crash.
If you’re not experienced with
short-trading, day-trading or buying up fast-rising altcoins to make a quick
profit, EverGrow Coin can be a good buy in June 2022.
Source: analyticsinsight.net