Will Crypto Recover? Top Coins for High Returns in 2022

Amid an extreme turmoil in global financial markets, the nascent crypto market, which was booming last year with over $3 trillion in market cap, has tumbled dramatically, losing nearly $2 trillion in value and entering what is known as a “crypto winter.”

The latest crypto crash has not come without less distress. For one, the prices of cryptocurrencies have plunged to the lowest levels in years. 

Bitcoin, the largest cryptocurrency, is down by more than 50% year-to-date and has shed about 70% of its value since hitting an all-time high of roughly $69,000 back in November 2021. The broader crypto market is also feeling similar pain.

Moreover, crypto companies are forced to lay off employees in waves amid fears that prices would remain low for an extended period. Major crypto exchanges Coinbase and Gemini have already announced layoffs, each cutting approximately 18% and 10% of their workforce, respectively.

To further exacerbate market sentiment, some prominent names in the crypto industry are headed for bankruptcy. While there have not been official announcements, rumors of Celsius and 3AC insolvency have gone viral over the past several days. 

Despite the sour crypto market conditions, some veterans are confident about the industry’s future. They are convinced that the market will eventually retrieve. 

Meanwhile, the question is, when will crypto recover? And when would be a good time to invest in cryptos?

Will Crypto Recover? Here is What Experts Say

Bitcoin and other cryptocurrencies are no stranger to crashes and years-long bear markets. The leading cryptocurrency alone has tumbled more than 50% six times since its debut in 2009, suggesting that such incidents are almost routine.

For instance, back in 2013, Bitcoin lost more than 80% of its value in a prolonged bear market after China banned financial institutions from using crypto. 

The flagship cryptocurrency underwent another 80% correction after its 2017 rally, entering a long bear market as the initial coin offering (ICO) bubble finally popped.

Now, in what seems to be another bear market, Bitcoin’s price is down by more than 70% compared to its all-time high. The crash comes after an unprecedented boom in late 2020 and 2021, which was marked by the entrance of big institutional investors. 

Considering that Bitcoin and other cryptocurrencies have survived similar crashes in the past, a number of prominent crypto veterans have offered assurance that prices will recover. 

However, to better predict when crypto will recover, it is important to explore what caused the current market crash in the first place. 

The recent market crash was the result of a mix of macroeconomic factors, as well as ripple effects of the collapse of Terra’s algorithmic stablecoin UST. 

The US Federal Reserve started hiking rates in March this year in a bid to rein in soaring inflation. The central bank raised interest rates by 0.75% in June, its most aggressive hike since 1994. Since risk assets perform poorly during rising interest rates, the recent hikes have acted as a drag on cryptocurrencies.

Aside from macroeconomic factors, the recent failure of some major crypto projects also impacted this crypto downturn. In May, Terra’s decentralized stablecoin UST lost its peg and led to the crash of the entire Terra ecosystem, worth around $40 billion at its peak.

As of now, the crypto market has mostly stabilized. In the near term, crypto is expected to follow the path of the stocks market, according to FTX CEO Sam Bankman-Fried, who believes a rally in the stocks market would also fuel a surge in the prices of cryptocurrencies. 

Binance CEO Changpeng Zhao, commonly known as CZ, is also confident that the crypto market will recover from the recent crash, but said it “probably will take a few months or a couple of years.” 

“If you look at the bottom [of bitcoin], right now it’s higher than the last peak. So, whether normal or not, I think with the industry still definitely growing, fluctuations in price is normal,” CZ reportedly said. 

Is Now Time to Buy Cryptos?

One good thing that comes out of bear markets is the opportunity to purchase cryptocurrencies at a discount. However, a major correction can not be an indication that a coin has bottomed.

Therefore, while it can be tempting to “buy the dip” during a crypto crash, prospective investors need to be extra cautious before pouring their capital into a coin. 

This is why experts usually suggest strategies like dollar cost averaging (DCA) for investors. DCA, also known as the constant dollar plan, refers to the practice of dividing up the total investment amount across periodic purchases of an asset at regularly scheduled intervals.

DCA is an effective tool for minimizing the impact of volatility and emotion when investing or purchasing a large chunk of an asset. 

Meanwhile, investors who are looking for a specific coin to invest in can consider My Freedom Coin (MFC), which is the native coin of a new decentralized financial software platform of the same name that operates on the Binance Smart Chain (BEP-20) network.

VISIT MY FREEDOM COIN TODAY

According to its whitepaper, MFC is a “stock-like cryptocurrency” that, unlike other cryptocurrencies, is designed to resist volatility and is prone to market crashes. 

The coin achieves this by setting a Floor Price. The Floor Price refers to the lowest possible price of the MFC token that only goes up over time. That is because all proceeds of the MFC platform, including loan interest and transaction fees, are charged in MFC and taken out of circulation.

Therefore, every transaction on the network reduces the circulating supply and contributes to the appreciation of the token, benefiting all MFC holders.

Moreover, the MFC ecosystem is not limited to an exchange and a wallet, it also includes a crypto bank where users can buy, sell, and take collateralized loans against MFC tokens at a 0.98% monthly interest rate. In order to use it, you will need to be invited and you can use the following QR Code or insert it manually to do so

Bottom Line

The crypto market has had a brutal first half of 2022. The total market cap of all cryptos plunged below $1 trillion, down from $3 trillion at its peak.

The crash came following the spectacular fall of Terra, once the third-largest stablecoin and one of the biggest blockchains, which erased more than $40 billion in value from the crypto market cap.

The collapse of the Terra ecosystem created a ripple effect in the crypto market, spreading troubles across other projects ⁠— including Celsius and 3AC, among others. 

Crypto crashes are not entirely out of the norm, but they can offer a unique opportunity to purchase cryptocurrencies at a discount. However, since it is next to impossible to identify the bottom of a bear market, investors need to be extra cautious before doubling down on a coin.

Meanwhile, there are some safe choices for crypto investors. One such option is My Freedom Coin (MFC), a “stock-like cryptocurrency” that, unlike other cryptocurrencies, is not prone to volatility and market crashes. 

The coin’s value is only supposed to increase over time because all proceeds of the MFC platform, including loan interest and transaction fees, are charged in MFC and taken out of circulation.

According to its website, $1000 invested in MFC in December 2021 would have been worth $16,352 now, which represents a return of more than 1,535%. In comparison, an investment in other major cryptocurrencies would have generated a negative return of more than 50% during the same period.