One expert predicts a scary crypto price crash

Experts fear another crypto crash is likely.

Despite bitcoin and other cryptocurrencies' recent gains, the crypto industry is still in peril. Bitcoin and ethereum are 50% below their November highs.

Bitcoin has gone below $20,000 numerous times in recent weeks, a key price threshold as experts debate whether it will suffer more drops like 2013 and 2017, when it fell 85% from its high. Ethereum has gained more than bitcoin in recent days and was trading above $1,500 on Tuesday.

Edward Moya, a senior market analyst at OANDA, predicts bitcoin might plummet to $10,000 before the market recovers. In two weeks, we'll know if bitcoin's price has bottomed out. Crypto analyst Wendy O predicts Ethereum might fall to $750, a 50% drop from its current price.

"We're in a bear market, not a cycle." Positive price activity doesn't indicate we're safe, argues O. To be really positive on ethereum, we'd need to break $2,248. There's a 50% off pump.

Another crypto crash?
Many analysts predict another crypto winter. Experts think crypto prices will likely remain low for the foreseeable future, like they were from early 2018 and mid-2020.

Moreover, despite the fact that some analysts believe that the cryptocurrency market has reached its bottom, a large number of analysts believe that prices will likely fall further in the coming weeks or months. They point to earlier crypto bear markets, which saw 85% losses from all-time highs, and current concerns that the macroeconomic environment could worsen.

Companies have laid off workers, blocked withdrawals, and tried to limit losses, raising doubts about the industry's health. Since Terraform Labs imploded in May, the crypto bear market has affected other firms. Coinbase, the largest U.S. crypto exchange, laid off 18% of its employees in June, after Gemini, BlockFi, and Crypto.com. Celsius stopped withdrawals owing to "severe market conditions" and Three Arrows Capital may liquidate.

Bitcoin plummeted below $19,700, triggering alarms. If it happens again, bitcoin might fall below $17,600, says crypto specialist Wendy O.

Preparing Investors

The crypto market has crashed before and certainly will again, so be prepared. Investors can observe market swings of more than 50% in a matter of months and 15% price gains within 24 hours.

Here are ways to protect your finances during excessive crypto market volatility:

Prioritize budget, debt, and savings
Be confident in your budget, debt, and savings before investing in crypto. A healthy budget and emergency fund can help you reach your financial goals and reduce investing stress.

Most experts think 3 months of spending is a reasonable starting point for an emergency fund. If you don't have an emergency fund, don't buy crypto; start saving a little each month. Experts suggest you should also have a retirement savings plan and no high-interest loans.

Diversify investments
You should protect your investments from market fluctuations. Diversify your investments. Crypto should be a modest part of your entire portfolio of equities, bonds, and mutual funds.

Now may be a good moment to buy in crypto while prices are cheap, but prices could fall further. Most experts encourage investing in bitcoin and etheruem.

Invest what you can lose
You should have a high risk tolerance and only invest what you can afford to lose. Experts advocate limiting risky assets like crypto to 5% of your portfolio. As with any new investment, you should investigate cryptocurrency dangers.