It’s not easy to believe in cryptocurrencies’ ability to grow right now. It’s all due to the ongoing collapse of the coin market, which has been exacerbated by the UST and Luna situation. Terra’s Stablecoin collapse has forced the company to sell off assets, which has also affected the value of popular coins held in reserves.

As a result, the current situation in the coin market looks like this. Note the price movement results over the last week: it really reflects what’s happening in the niche.

Situation in the cryptocurrency market

Despite this, experts recommend not to be disappointed in digital assets. Moreover, the latter still have an advantage over traditional financials. Especially when you consider long-term investments.

What is worth investing in?

This week, the crypto market suffered one of the biggest collapses in its history, with niche capitalisation falling more than 30 percent from $1.8 trillion to $1.2 trillion. Bitcoin fell below $27,000 for the first time since late 2020, losing about 30 percent of its value in the same period.

Bitcoin exchange rate over the past 90 days

It’s not just crypto that’s going through a “rough patch”. In particular, the stock market has also experienced one of its worst moments since 2020. For example, the technology-focused Nasdaq Composite Index fell more than 12 percent in the same time frame, dropping below 12,000 points. Well, the market value of technology giants like Apple and Microsoft fell by about 13 percent, while Tesla shares fell by 23 percent altogether.

Nasdaq Composite Index

Jaime Baeza believes that in this situation it is better to analyse the ratio of risk to potential return over the long haul, i.e. with an eye on several years. Here is his quote, published by the Cointelegraph news outlet.

Over the long haul, without going into too much detail, I believe crypto provides a much better risk-to-reward ratio on investments.

Note that there is no point arguing with crypto's ability to deliver crazy returns. For example, according to the results of the extremely profitable year 2021, the top coins increased in price by more than 10 thousand percent. To make it clear, here is once again the result of cryptocurrency price movements in the past year.

Graph of cryptocurrency exchange rates by months and for 2021 as a whole

The CFO of cryptocurrency exchange Huobi Group, Lily Zhang, expressed a similar opinion. He said that the volatility of cryptocurrencies could guarantee “more opportunities for substantial profits”. Here is his rejoinder.

It is important to note that we are in the middle of a new US Federal Reserve rate hike cycle. Both cryptocurrencies and stocks could be subject to sudden capital outflows, making them susceptible to deep corrections.

Read also: Bitcoin's next halving is closer than the previous one. What does this mean for crypto investors?

From a fundamental perspective, Bitcoin is still doing pretty well. For example, the day before, Emirates, the largest airline in the United Arab Emirates, announced its plans to introduce cryptopayments and launch unique token trading services. In a meeting with journalists at the Arabian Travel Market, Emirates Chief Operating Officer Adel Ahmed Al Redha said that the airline will be hiring new employees to work on blockchain-related projects.

Emirates chief operating officer Adel Ahmed Al Redha

Al-Redha said the airline is considering using the technology to keep records of aircraft. In addition, Emirates could use the meta-village concept to transform its business processes like training, sales, web development and so on. The company’s management believes it will make the process of learning new skills “more interactive”.

In addition, Al-Redha also noted that the airline industry is slowly recovering from the COVID pandemic as more and more tourists are coming in. To expand its reach, the company and is introducing new technologies by betting on cryptocurrencies, NFT and meta-universes. And it looks like a very forward-thinking move, given the outlook for the crypto market.


We believe that the results of the experts' analysis are indeed true. Yes, it's not easy to believe in the prospects of making money from digital assets right now, but that's what usually happens during bearish trends. But when the sector is once again driven by bulls, then equities will once again seem like the choice except for boomers who are unable to understand crypto.