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7 Cryptos Flashing Red as the Digital Assets Market Tumbles


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  • Truth be told, cryptos have failed so far this year as a digital safe-haven asset class but their evolution could deliver long-term profitability for patient investors.
  • Bitcoin (BTC): The benchmark of all cryptos is likely to suffer losses in the near term as the weak hands panic out — though, investors will eventually have a once-in-a-blue-moon discount.
  • Ethereum (ETH): The application backbone of cryptos also succumbed to market pressure, with the $2,000 level likely to become a critical battleground.
  • Tether (USDT): Though Tether has held up because of its role as a stablecoin, too much volatility could pose severe challenges for this asset class.
  • XRP (XRP): Although XRP has suffered a series of disappointments, the other cryptos may suffer more pain down the line since the lawsuit front-ended the damage.
  • Litecoin (LTC): A combination of a highly anticipated upgrade and its under-the-radar profile might make Litecoin intriguing compared to other cryptos.
  • Chainlink (LINK): Once one of the most talked-about altcoins, Chainlink is now trading at single-digit prices, presenting an enticing buy-the-dip opportunity.
  • Monero (XMR): Call me cynical but the brutal taxation season for many crypto investors may draw attention to secure and anonymous Monero.

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Although ardent blockchain proponents have long argued that some cryptocurrencies — especially after having achieved substantial mainstream visibility last year — will eventually become safe-haven assets, we must accept certain realities: this transition has yet to happen consistently and satisfactorily. Indeed, the latest fallout in cryptos suggests that they’re very much aligned with the dynamics involved in the global equities sector.

As you’re well aware, that’s a problem because stocks have also flashed red. Last week’s trading sessions were just brutal heading into the weekend. And until now, this week didn’t provide much of a boost either.

Based on data from Coinmarketcap.com, this unfortunate tally appears to be a fresh low for the year so far. Still, the one positive takeaway is that during the implosion of the digital assets sector last July, total market cap slipped to $1.2 trillion. Now, the global crypto market cap is at $1.32 trillion.

Still, for the bold contrarian, the volatility may present long-term upside opportunities. And considering that the cat’s out of the bag in terms of decentralized financial applications, certain assets are now listed at intriguing discounts. So, with that in mind, here then are the cryptos to watch.

Cryptos on Red Alert: Bitcoin (BTC)

Bitcoin (BTC-USD) cryptocurrency with pile of coins, Vector illustrator

Source: Sittipong Phokawattana / Shutterstock.com

As the benchmark of all cryptos, most blockchain proponents had high hopes for Bitcoin (BTC-USD) separating its correlation with mainstream investment classes like the stock market. Alas, that was not to be. While the equities sector suffered severe, confidence-shattering losses, Bitcoin did the same. You might even say it did worse.

For several months, BTC’s $40,000 level represented stable support. Not now. Currently, Bitcoin is trading just a few bucks above the $30,500 level. Any further damage and sustained trips below 30K is incredibly problematic for BTC. Unfortunately, such a circumstance isn’t out of the question since trading apparently reflects a broader risk-off sentiment.

To be fair, I don’t want to dismiss Bitcoin’s bounce-back capabilities. Back in July 2021, cryptos appeared headed for the abyss until they staged a surging comeback. This time around, though, you’ll want to be patient as retail investment support may be tapped out due to cash inflows to speculative arenas like non-fungible tokens (NFTs).

Ethereum (ETH)

Crypto currency etherium. ethereum coin on exchange charts. e-currency Ethereum

Source: viktoryabov / Shutterstock.com

The same forward-looking idea for Bitcoin also applies to Ethereum (ETH-USD): exercise patience since the big discount could be coming our way. With BTC recently printing gobs of red ink, alternative cryptos (or altcoins) didn’t fare much better. In fact, over the past 7 days, Ethereum has shed more than 22%.

Again, a correlation with the equities sector is proving to be harmful for cryptos like Ethereum. Per Michael Kamerman, CEO of trading platform Skilling, “Cryptocurrencies are increasingly moving in sync with tech stocks with investors treating both as risk assets and often retreating to safer corners of the market during bouts of market volatility.”

Moving forward, the $2,000 level will likely be a massive battleground between bulls and bears. In July 2021, ETH dipped below $1,800 before skyrocketing to all-time highs. However, there’s zero guarantees that the same circumstance will materialize again. Thus, investors should wait for more confirming details prior to a big expenditure.

Cryptos on Red Alert: Tether (USDT)

A concept token for the Tether (USDT) cryptocurrency.

Source: DIAMOND VISUALS / Shutterstock.com



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