The great crypto crash of 2022 is well underway, marked earlier this spring as Bitcoin and other top currency prices continue to plummet. Currently, the cost of Bitcoin has been cut in half from last year’s all-time high of $69,000 per coin in November.
Coinbase is feeling the heat, with more layoffs continuing to happen at the company as they brace for a steeper downfall. In the latter half of June, Coinbase layed off 18% of its workforce, or roughly 1,100 people. In the same vein, Robinhood shares have plummeted nearly 50% so far this year.
The quick downfall is largely due to the impending—or as some would say, present—recession. But the crypto winter may take a very long time to recover. A look back to the last crypto winter, which happened in late 2017 and early 2018 when bitcoin crashed as much as 80% from all-time high, tells us that it took about 18 months to recover.
For many investors, the crash has been painful and anxiety-inducing, as prices continue to drop at rapid rates. For those who’ve been hesitant to invest, this may have been their sign not to pursue crypto. In fact, in a 2022 survey, 25% of respondents said fears crypto won’t stay successful is the reason they won’t invest.
The survey also found that millennials could be hit hardest by the crypto crash, as 73% of millenials know someone who has invested in bitcoin—more than any generation. Additionally, millennials have taken more time to research digital coinage and NFTs, with 80% reporting they’ve spent hours dedicated to research.
Gen Z also reported spending a large amount of time dedicated to crypto investing and research, at 78%, but less Zoomers know someone who’s invested.