It has been a relatively challenging past few months for the cryptocurrency industry. After over a year of mostly bullish movements where investors continued to cash checks and smile to the bank, coin prices have essentially tumbled and gains have been wiped out.
For several reasons, crypto has now essentially become a minefield. Investors are feeling more scared than ever to come in, and even some of the top platforms in the market have now been rendered vulnerable – if not entirely bankrupt.
The Crypto-Forex Correlation
The recent movement in crypto prices has become incredibly reminiscent of forex and stock prices in the past few months as well. A little over two years ago, when the coronavirus pandemic was at its worst and everyone was forced to stay indoors, crypto had initially served as a safe haven for most of these investors who are looking for gains now.
Sure, Bitcoin (CRYPTO: BTC) began the endemic trading at a low of $3,600. However, in the months following the lockdowns and entire pandemic, the crypto market was able to surge to a new high, with coins breaking records and becoming more valuable than ever before.
On the flip side, forex and stock markets only saw slight jumps – although they did surge as well. Investors who bought crypto during the pandemic made the biggest gains of everyone, and it became rather clear that digital assets were indeed the best bet for anyone looking for safety.
Compare that to this year, and that belief appears to now be very wrong. On the back of struggling economies and the possibility of widespread recessions, cryptocurrencies – as well as other markets – have …
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