Is the Crypto Market Starting to Show Signs of Recovery?
It is no secret that cryptocurrencies have been on a downward momentum for a pretty long time and that this has led to the usual problems in the financial markets. Traders and investors have been struggling with the crash-scandal-lethargy combination, which appears every time a major financial asset is put under pressure. The cryptocurrency crash of 2022 is not the same as the bubble bursting of 2018, but it has had an equally negative effect. However, crypto coins are starting to show signs of stability and they are starting to show signs that they are one step away from being on their way up again.
The activity in many of the world’s most popular cryptocurrency exchanges seems to be picking up again and this is having a positive effect on many traditional and newer crypto coins. The positive signs are more visible on Bitcoin and Ethereum, as these two assets always give an upward or downward push to the rest of the crypto market. This does not mean that traders and investors have started putting all their investment funds on cryptocurrencies, but the trading activity is not as lethargic as it used to be during the last few months.
Crypto Trading Is Still Considered a Risky Business
Dealing with cryptocurrencies is no easy task and it is definitely not like participating in games of skill like live poker, where players can at least use a strategy in order to turn the odds to their favor and to psych out their opponents by making an unexpected move on the poker table. Indeed, many analysts believe that crypto is less predictable than games like poker. When it comes to cryptocurrencies, there are many things that cannot be predicted and there are many things that can happen during the course of the day. You can be earning thousands in the morning and you can be losing thousands in the afternoon. Apart from that, there are always scandals that can make traders and investors hesitant about putting their money on crypto coins.
The FTX Collapse Is not the First Investment Scandal in History
The collapse of FTX shook the world of finance and created yet another case of scandals in the financial market. Thousands of people faced and are still facing losses because of the actions of Sam Bankman-Fried. Many of these investors have remained anonymous but among the names of those who were affected by FTX’s fraudulent activity, one can find top-level athletes, global celebrities and people with really deep pockets. The investors’ money seems to have been spent on sponsorships that helped build the brand name of FTX, luxury lifestyles for the people running FTX and, potentially, political influencing. The clients of FTX are dealing with collective losses that sum up to several billions of dollars, which are a result of what Bankman-Fried has categorized as “not as nearly competent as I thought I was”.
Given the damage that it has caused, the prosecution of FTX has naturally gone to the top of what investors are searching for on Google. However, while everyone talks about FTX and about Bankman-Fried, Bitcoin and other cryptocurrencies are starting to earn back part of their value. BTC and ETH have had solid performances, with a slow but steady increase in value. Seeing these positive performances, traders and investors are keeping their hopes up about the short-term future of crypto assets. Nobody expects Bitcoin to go back to being worth 70,000 dollars any time soon of course, but at the same time, nobody seems to be worried that it will drop to 3,000 dollars either.
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