Stocks and Crypto Have Entered a Bear Market: What You Should Know

Crypto and digital currencies

Jun 21, 2022

4 min. read

James Irwin

Author

Stocks and cryptocurrencies have undergone massive devaluations. Investors and businesses now face a bear market—but it may not last.

The stock and cryptocurrency markets saw a significant decline in the third week of June, as massive sell-offs produced conditions known as a bear market.

Markets Saw Losses Upward of 4%

On Monday, June 13, the Nasdaq Composite fell by 4.7% to $10,809—the lowest value that it has seen since September 2020. The S&P 500, meanwhile, fell by 3.9% on Monday to $3,749, a level roughly 20% below its January highs.

Those losses can be attributed to various effects. One factor that caused investors to sell off their assets was anticipation of a Federal Reserve meeting that on Wednesday raised interest rates by 0.75 percentage points.

Investors may have been concerned about other global events as well. Commodity prices have been driven higher by the Russian-Ukraine war. China’s worsening economy might be another factor that has led to the latest bear market.

The cryptocurrency market also saw massive losses on Monday, as Bitcoin fell by 17% that day to $23,000. Bitcoin’s primary competitor, Ethereum, fell in value to $1,200.

The crypto market has likely been affected by a liquidity crisis concerning the blockchain project Celsius. The project has apparently lost an unspecified amount of funds and is now pausing most of its services due to “extreme market conditions”—a decision that sent panic across the crypto market.

What Does the Bear Market Mean for You?

The bear market will likely have some effect on businesses, as some will struggle to stay afloat in uncertain conditions.

There are several ways to survive a bear market. The consultancy company Forestlyn suggests that customer validation should be a priority and that companies should rely on bootstrapped capital for funding. It also says that smaller companies may have an advantage over larger companies if they can adjust to market changes more quickly.

However, there may be little reason for concern in the long run, as markets usually recover from adverse conditions.

February and March 2020, which marked the beginning of the COVID-19 pandemic, also produced conditions that were considered a bear market. The market nevertheless recovered most of its losses within just six months.

If this year’s bear market plays out similarly, businesses may find themselves back on solid ground once again in the near future.

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Before you open a UK multi-currency account with any platform or service, make sure you have explored all of the different options available to you and have found the best type of account to suit your financial needs.

How Does a UK Multi-Currency Account Work?

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Withdraw money

Send and receive payments in multiple currencies internationally

Access your funds for electronic transfers

Earn interest on your account total

In the same way that fees can occur with a standard bank account you may run into additional charges with a UK multi-currency account.

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Alternative Options to Consider Before Opening a UK Multi-Currency Account

There are many alternatives to opening a UK multi-currency account. For example, there are also money transfer services and online electronic wallets such as Payset that allow you to send your money in over 34 currencies without the need for a UK multi-currency account. You can start sending money across the globe or in person today using your existing bank account.

Frequently asked questions

What is a UK multi-currency account/IBAN?

Are there limits to the amount of money I can send and receive with a UK multi currency account?

Which currencies can I send and receive in my UK multi currency account?

How do I add money to my UK multi currency account?

Types of UK Multi-Currency Accounts

Multi-currency IBAN accounts
Personal multi-currency accounts
Multi-currency accounts for business
Multi-currency cash passports
Multi-currency wallets

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