If we talk about historic minimums and maximums, Quantum Code App are the protagonists; since 2021, they have been in a constant price variation.
The volatility so far in 2022 has not benefited crypto trades, leading them into a downtrend that is looking increasingly plummeting.
An economic and financial situation is complicated not only for the United States, one of the countries with the most effective use of DIGITAL CURRENCIES but also for the digital market, coupled with a military confrontation that is entirely counterproductive.
The month of May has been the one that has generated the most information regarding the valuation of cryptocurrencies, specifically Bitcoin, and the stablecoins that are anchored to the value of the dollar have been highly affected.
On the other hand, we find the millionaire losses that the fall of Terra Luna represented for the company that supported it.
BITCOIN reached shallow values; even the price of this digital currency fell back compared to the value it had for December 2020, where all 25,000 dollars.
However, the prices have not been very encouraging compared to its last all-time high in November, when it was practically valued at $60,000; today, its price is almost half of this reference.
Crypto asset followers point to the upside.
Although, for the digital financial market observers, the situation they are going through is a total debacle, the prices are not even close to the forecasts that the finance experts had visualized.
Due to the high tension and anxiety about losing everything, many users may have made them sell their available crypto active units to convert the currency into another asset that allows capital to be improved.
Financial market analysts, among which cryptocurrencies, NFTs, and FinTechs stand out, usually indicate that Bitcoin may not reach $100,000 but at least $75,000 by the end of 2022.
Although everything is possible in this market, whose volatility is 100% variable, we could witness a new maximum of around 90,000 and 95,000 dollars per unit of Bitcoin.
Bitcoin’s positioning as a store of value has given it greater visibility among large-scale investors.
Long-term investments at this time may be the best option in terms of cryptocurrencies as a financial tool, getting more users to invest, but, taking Terra Luna as an example, it should be about projects with a track record and whose market capitalization is the highest profits.
The scenario expected for the rest of the digital currencies is similar to that of Bitcoin; only experienced investors are capable of predicting, based on their experience, what could happen in the remainder of the year.
If Bitcoin falls, they all fall.
Unfortunately, inflation has played against the development of the digital financial market of cryptocurrencies. Furthermore, the harsh measures taken by the Fed with the rise in interest rates to counteract the inflationary effect have made risk assets less attractive.
The inflation rate that the United States has not seen since 1980 is why the situation regarding investments in traditional or digital assets is so complex.
The other digital currencies, such as Ethereum and Dogecoin, have experienced declines that, on average, reach 47% of their value at the beginning of 2022.
Figures can be alarming for anyone; only holders are waiting for new scenarios since stablecoins have also been affected after all these adverse developments.
Bitcoin may continue to trend down, with its value touching $20,000. Still, the recovery may be much more interesting than all this dark phase engulfing cryptocurrencies.
The diversification of investment portfolios at this time is one of the most delicate points since the profits that can be generated when the trend of Bitcoin and other currencies change will depend on this.
Conclusion
Although cryptocurrency is not going through a good time, it is known to recover quickly and steadily. Now, we are only facing a corrective trend, which could continue to decline, but at the end of this phase, the rise will surprise more than one.
It was there when the countries began to generate controversy regarding the lack of regulation and began to create various legal bases according to the jurisprudence of each country that allows them in some way to establish them as legal tender financial instruments.
