The great crypto crash of 2022: How we got here & where we are headed

The crypto market is in dire straits. The bear market has caused many crypto investors to rethink their future crypto investments as well. How did crypto get here and what's in-store? We spoke with experts to find out.

An array of cascading red graphs across various crypto exchanges has sent investors into a frenzy. The current crypto meltdown has been a reality check for many investors who were looking to make a quick buck from the digital currency.

Not only has crypto seen some of its worst months in terms of valuation, but it has also betrayed faithful crypto investors who thought these assets could offer them some economic stability.

But how did it come to this? Why is Bitcoin, a digital currency that was being heralded as the next big thing, now hanging by a thread with an uncertain future? What will be the future of crypto investors in India and globally?

Let’s take a look at some of the reasons behind this crypto turmoil, the damage it’s dealt investors and exchanges alike, and things to keep an eye out for in the coming days.

The year 2021 was one of the best times for crypto investors. While Bitcoin had hit an all-time high of $69,000 (Rs 54.5 lakhs) in November 2021, the overall Bitcoin market capitalization stood at almost $3 trillion. Analysts and crypto evangelists were predicting Bitcoin to cross the $100,000 dollar mark before the end of the year. Little did they know that the worst was yet to come.

January 2022 saw the crypto market drop below the $2 trillion mark and after that, it was all downhill barring a slight recovery in April. At the time of writing, the world’s largest cryptocurrency, Bitcoin, is trading at $19,165 (Rs. 15 lakhs approx) with a 7-day drop of 8.47 percent. This is close to the lowest it’s been in years.