In the trading year to date, a second crypto meltdown occurred in June 2022. The fall of Terra Luna in May destroyed $500 billion in value from the cryptocurrency market. Nearly $400 billion had already departed the cryptocurrency market as of June 2022, the first time since January 2021 that this has happened.
It's possible that many cryptocurrency investors believed May was the ideal time to purchase the dip. Since then, the cost of one bitcoin has decreased from $40,000 to $28,000. But if you had bought at $28,000, your investment would have lost 30% of its value because the price of bitcoin now hardly stays over $20,000! All of this begs the question: Will 2022's second cryptocurrency meltdown is a good opportunity to purchase the dip?
Tokens with solid foundations have the best chances of surviving a crypto meltdown like the one we are seeing in June. At the beginning of May, Terra Luna was among the top 10 cryptocurrencies by market capitalization; however, the token's value has since plummeted 99.99% from its peak of over $80 in May. The foundations of these tokens were weak.
Despite the ups and downs, Bitcoin's price is currently a long way from its most recent record high, which it reached in November when it surpassed $68,000. Bitcoin is still worth more than twice as much as it was only a few years ago, despite the current price decrease. These price variations are nothing new for Bitcoin.
The volatility is nothing new, and it's a major factor in why experts advise novice cryptocurrency investors to exercise great caution when designating a portion of their portfolio to digital currencies.