The status of the cryptocurrency market has Twitter a-twitter. What will happen to the crypto market is one of the most important issues on everyone’s mind right now due to the presence of fear, uncertainty, and doubt (FUD) in the market.

What Happened to Crypto Market?

Month after month, cryptocurrency prices have been falling, giving rise to the term “crypto winter” from some analysts. Other significant cryptocurrencies are following Bitcoin’s lead, which has dropped more than 50% from its all-time high (ATH).

As a result, an increasing number of recently introduced investors are falling prey to FUD and questioning whether cryptocurrencies have any chance of surviving. However, due to the market’s historically high highs and for certain long-term HODLers, this kind of volatility is really very common and has long been anticipated.

Despite the fact that the market has been in a bearish trend for a while, one particular event had a huge effect on the crypto market as a whole. Investors had second thoughts about their holdings as a result of the “Terra-LUNA collapse” because of its decline, which implied that not all cryptocurrencies would be safe.

How Did the ‘Terra-LUNA’ Incident Impact Crypto Market?

Since LUNA was one of the top ten cryptocurrencies, it caused concern, particularly among cryptocurrency investors who prefer to place their money in projects other than Bitcoin and Ethereum, which some experts believe to be two of the most reliable coins. Some investors may have been scared off by the sharp price declines of the two most popular cryptocurrencies.

The market’s steep decline may be disconcerting to investors who began purchasing cryptocurrency when it was at its peak. This is particularly true for buyers who made their purchases at the height of the bullish season.

Investors are now beginning to look behind the hype and examine the coin’s tokenomics to see whether or not a project is actually safe in the wake of the Terra LUNA crash.

What’s Happening on Twitter?

On Twitter, the discussion about which cryptocurrencies to avoid and why is popular. Analysts are right now learning everything there is to know about cryptocurrencies, including which ones are safe to invest in.

Another major controversy has Elon Musk being sued over what occurred to Dogecoin, with the lawsuit referring to the incident as a “pyramid scam.” These are only a few of the incidents that have made many novice investors frightened.

How Crypto Traders Make Money in the Market?

Certain cryptocurrency exchanges are used by traders so they can implement long or short market positions. With a long position, they can profit when the value of cryptocurrency rises, and in a short one, it can fall. In this manner, they are able to profit from the volatility regardless of the direction the market is headed.

They have a lot of options for the business they want to trade with. Major players in the cryptocurrency industry include exchanges that also function as brokerages, including Coinbase and Bitcoin Profit.

Why Aren’t Older Crypto Investors Worried?

Older, more seasoned investors may partially anticipate the volatility of the cryptocurrency market, and while they may be experiencing some losses, they have been involved in the market for far too long to be unaware that this could simply be the beginning of another negative market cycle. Other investors claim that since the current prices are regarded as market discounts overall, this is the ideal time to purchase more cryptocurrency.

All markets, including those for stocks, foreign exchange, commodities, cryptocurrencies, and others, encounter market volatility. The magnitude of the changes in the crypto market, though, is something that worries many new investors.

Conclusion

You can profit from the cryptocurrency market whether you’re a long-term hodler or a short-term investor if you only invest money you can afford to lose. Due to market volatility, it is essential to consult a financial counselor before making an investment to make sure it won’t affect your overall financial situation.