Last year, China and Russia issued blanket bans on all crypto-related activity, causing prices to plummet. After that, the Russian-Ukrainian conflict also led to a dramatic decrease.
With many projects struggling and developers giving up halfway through, many people started to think crypto was too risky. Tobias Adrian, the IMF’s current director of monetary and capital markets, said the pressure combined with numerous failed projects could lead to sales.
Stablecoins have also been hit hard lately, known for their performance and low volatility. BTC also peaked in August 2021, but its price is now $22,000. With signs of recovery, enthusiasts hope it will rise and reach a higher value.
Massive sales are a sign that people want to be out of the market. It also shows that there has been a lack of confidence and that people consider the market too risky. They minimize their losses and seek to get out as much money as possible.
But with the growing adoption of crypto, it is a must to add to one’s portfolio. This is new technology and with DeFi gaining more prominence than ever, it will be a great addition to your portfolio.