The crypto market experienced one of its worst crashes of 2022 this week. The market recovered slightly from these lows, with Bitcoin recovering $30,000 in the past few days. But why was this accident so devastating? Here are some reasons:
The crash came after months of negative sentiment in crypto.
Economic and geopolitical conditions around the world are not favorable to investors at this time.
Crypto in general was expected to undergo a correction after a superb performance in 2021.
Despite this, there were a few coins on the market that crashed more than others. While Terra (LUNA) led the way in terms of decline, the next 3 coins were also hit hard.
Avalanche (AVAX) had already made good gains on the upside and even threatened to claim its position among 10 of the most valuable crypto assets. But this week’s crash had a huge impact on the altcoin.
Data source: Tradingview
Compared to 7 days ago, AVAX has lost more than 45% of its value. Also, even though the market has generally recovered, AVAX is still slower than most major coins. It seems that investors are not buying it with the same veracity as before.
Exchange of pancakes (CAKE)
PancakeSwap (CAKE) was also another coin that fell sharply in this week’s crash. However, it is important to note that prior to the crash, CAKE had actually recovered considerably. The 45% decline we saw was largely part of a correction that most investors were already expecting. Anyway, it was still a huge downfall.
Chain of Thor (RUNE)
ThorChain (RUNE) has yet to fully recover from this week’s crash. The coin actually continued to post losses despite the overall market recovery. RUNE had lost nearly 50% of its value in the past seven days. It remains to be seen whether he will rebound soon. But at the moment, it seems that buyer demand for RUNE is very low.