The most recent cryptocurrency crash demonstrated how volatile the market can be and how a crisis can turn the entire market upside down. The crisis and crash were precipitated by the chaos surrounding FTX. Prices have stabilized in the last 1-2 days. However, the atmosphere remains tense. This article is all about the three cryptocurrencies to consider in this crisis. Let’s take a look at it in more detail.
What happened to the price of cryptocurrencies?
Cryptocurrency prices have plummeted in the last few days. The USD 20,000 Bitcoin price briefly fell below the USD 16,000 mark. Bitcoin reached its lowest point in 2022, surpassing the previous low of mid-June. In total, the Bitcoin price has dropped by around 20% in the last seven days.
Other cryptocurrencies have also suffered significant losses in value. Ethereum suffered slightly greater losses. However, major coins have all lost double-digit percentage points in the last seven days.
What Caused the Cryptocurrency Crash?
The implosion of the FTX token and the bankruptcy of the crypto exchange FTX were the causes of the crash and crisis. The financial situation of FTX has been precarious for several weeks.
The announcement by competitor Binance that they planned to liquidate FTX tokens in their possession in the coming weeks accelerated FTX’s demise. This announcement sparked a wave of panic selling among investors.
Three cryptocurrencies that are worth investing in this crisis
During this crisis, certain cryptocurrencies may be worthwhile, as they are more conservative but may still generate returns shortly. In a crisis like this, these three coins are probably best suited:
Bitcoin is most likely the cryptocurrency that most investors should rely on, especially during market downturns. The first and most important cryptocurrency has been around for 13 years and is thought to be far more stable than many modern cryptocurrencies.
If Bitcoin’s value falls, almost every other coin will fall into line. The Bitcoin price defines the market’s direction. As a result, apart from stablecoins, no other coin or token is as safe in a crisis as Bitcoin.
But apart from the FTX crisis, external market factors are generally favorable (declining inflation, no new interest rate increases, more interest in risky investments on the financial markets). This could result in Bitcoin’s price stabilizing over the next few weeks.
Binance Coin (BNB)
In the short term, the BNB benefited greatly from the FTX token’s demise. Following Binance’s announcement that it was liquidating the FTX tokens, many investors became enraged at the world’s largest crypto exchange. Market manipulation appears to be a possibility. However, FTX eventually found itself in a difficult financial situation. Even if many investors are rightfully outraged by Binance’s actions, the situation among cryptocurrency exchanges cannot be changed. The BNB price has a good chance of increasing significantly in the coming weeks and months.
Before the crash, the XRP coin had one of the best performances among the top cryptocurrencies. This was primarily due to the fact that more and more positive information about the status of the legal dispute between Ripple Lab and the American Securities and Exchange Commission has become viewable.
As things currently stand, Ripple could win the lawsuit, giving the XRP price a significant boost in the coming months. Many analysts believe that the XRP coin is still remarkably underpriced. Ripple’s payment network has been in operation over several years and is profoundly very well placed. Investing in XRP appears to be fairly risk-free.