Beautiful Virgin Islands

Thursday, Jun 05, 2025

Cryptos Not Out Of Danger Zone Yet

Cryptos Not Out Of Danger Zone Yet

Cryptocurrencies, which have been trending up in recent weeks after a sustained crash that had wiped their market value by $2.0 trillion, are not out of the danger zone yet, analysts say.
Bitcoin and ethereum, the two largest cryptos, are still sitting nearly 50 per cent below their all-time highs in November 2021.

Since late June, Bitcoin has been trading at around $20,000 to $24,000. While it has shown attempts to push higher, it has strugglled to create a significant breakout. But there are now signs of a small rally, crypt analysts say.

“BTC continues to show signs of bullishness mainly due to higher highs and lows being formed,” Vijay Ayyar, vice president of corporate development and international at crypto exchange Luno, said.

Critics says the crypto crash — from $2.9 trillion to less than $900 billion in recent months has reinforced the perception that markets for the digital currency are little more than global casinos operating with virtually no rules or accountability. Cryptos are still used primarily as an investment vehicle as it is not widely accepted as payment for goods and services, they argue.

After crashing below $20,000 in recent weeks from its peaks of $65,000 in November 2021, bitcoin started a recovery to hit $24,000 even as experts debate whether it will see further declines similar to 2013 and 2017. Ethereum, the second most valuable digital currency, has seen more gains than bitcoin over the last few weeks and was trading above $1,900.

The crypto market could still experience one more drastic sell-off before it is on the road to recovery, says a senior market analyst.“Between a collapse in the market, layoffs and the ongoing liquidity crisis in the crypto industry, prices will likely remain low for the foreseeable future, such as they did in between early 2018 and mid-2020.”

Some experts say another crypto winter is already setting in. Between a collapse in the market, layoffs, and the ongoing liquidity crisis in the crypto industry, they say prices will likely remain low for the foreseeable future, such as they did in between early 2018 and mid-2020.

“Crypto assets are very volatile, in part because there's so much uncertainty about which crypto technologies are likely to be the most useful in the long run—for example, which ones the market may coordinate on for mediums of exchange, and a lot of the applications are technological in nature and novel (or at least unproven). And so, there's a lot of uncertainty and a lot of the value of return is downstream, just like with tech companies,” says Harvard Business School Professor Scott Duke Kominers.

How vulnerable are crypto investors, particularly the retail-level amateur investors amid a flurry of bad news involving high-profile firms like bitcoin, terra, and Celsius? Experts believe there is a need for more consumer protection in this space across the board.

“There needs to be more transparency and not just transparency at the abstract level, but the technology needs to be made transparent for consumers in ways that they can understand. This is a problem across crypto, and it's one that companies are starting to try and solve,” says Kominers.
Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
Global News Roundup: From Ukraine's strategic military strikes and Russia's demands and Tensions Escalate in Ukraine, to serious legal issues faced by Britons in Bali and Trump's media criticism, the latest developments highlight a turbulent landscape
Majority of French Voters View Macron's Presidency as a Failure
Hungary Partners with China to Boost Electric Vehicle Production
‘Vibe Coding’ Emerges as the New DIY Trend
AI Pioneer Yoshua Bengio Warns Models Can Deceive Users
Big Four Firms Rush to Create AI Auditing Systems
Musk’s xAI Pursues $113 Billion Valuation in New Share Sale
Walmart Increases Revenue Despite Shrinking Workforce
Hims & Hers Plans UK and EU Launch of Replica Obesity Drugs
Toyota to Acquire Supplier in $33 Billion Buyout
U.S. Reduces Military Presence in Syria
Trump Demands Iran End All Uranium Enrichment in Nuclear Talks
China Accuses US of Violating Trade Truce
Panama Port Owner Balances US-China Pressures
France Implements Nationwide Outdoor Smoking Ban to Protect Children
German Chancellor Merz Keeps Putin Guessing on Missile Strategy
Mandelson Criticizes UK's 'Fetish' for Abandoning EU Regulations
British Fishing Boat Owner Fined €30,000 by French Authorities
Dutch government falls as far-right leader Wilders quits coalition
Harvard Urges US to Unfreeze Funds for Public Health Research
Businessman Mauled by Lion at Luxury Namibian Lodge
Researchers Consider New Destinations Beyond the U.S.
53-Year-Old Doctor Claims Biological Age of 23
Trump Struggles to Secure Trade Deals With China and Europe
Russia to Return 6,000 Corpses Under Ukraine Prisoner Swap Deal
Microsoft Lays Off Hundreds More Amid Restructuring
Harvey Weinstein’s Publicist Embraces Notoriety
Macron and Meloni Seek Unity Despite Tensions
Trump Administration Accused of Obstructing Deportation Cases
Newark Mayor Sues Over Arrest at Immigration Facility
Center-Left Candidate Projected to Win South Korean Presidency
Trump’s Tariffs Predicted to Stall Global Economic Growth
South Korea’s President-Elect Expected to Take Softer Line on Trump and North Korea
Trump’s China Strategy Remains a Geopolitical Puzzle
Ukraine Executes Long-Range Drone Strikes on Russian Airbases
Conservative Karol Nawrocki wins Poland’s presidential election
Study Identifies Potential Radicalization Risk Among Over One Million Muslims in Germany
Good news: Annalena Baerbock Elected President of the UN General Assembly
Apple Appeals EU Law Over User Data Sharing Requirements
South Africa: "First Black Bank" Collapses after Being Looted by Owners
Poland will now withdraw from the EU migration pact after pro-Trump nationalist wins Election
"That's Disgusting, Don’t Say It Again": The Trump Joke That Made the President Boil
Trump Cancels NASA Nominee Over Democratic Donations
Paris Saint-Germain's Greatest Triumph Is Football’s Lowest Point
OnlyFans for Sale: From Lockdown Lifeline to Eight-Billion-Dollar Empire
Mayor’s Security Officer Implicated | Shocking New Details Emerge in NYC Kidnapping Case
Hegseth Warns of Potential Chinese Military Action Against Taiwan
OPEC+ Agrees to Increase Oil Output for Third Consecutive Month
Jamie Dimon Warns U.S. Bond Market Faces Pressure from Rising Debt
Turkey Detains Istanbul Officials Amid Anti-Corruption Crackdown
×