Bitcoin: Why the biggest cryptocurrency is crashing
The story of the world’s most well-known cryptocurrency moves at such a dangerous pace that you will soon have rows of people who will tell you how wrong you are.
However, the last 24 hours have been terrible for cryptocurrency, even in terms of bitcoin value, and thus we must write about it.
As a bitcoin enthusiast, you realize that the whole crypto market is in turmoil, to put it mildly.
What’s the matter
At the time of writing, the price of a bitcoin is $ 21,156. A one-quarter decline in the previous five days brought it to its lowest level in 18 months. It’s been a long time since it reached more than $ 70,000 in November
The graph indicates a downward trend, the only way they can go.
For what?
Experts believe that this is due to the changed environment around the world. Things are not looking good because we are talking about cryptocurrency
With rising inflation, rising interest rates, and rising living costs, things are getting tougher and tougher. The S&P 500 is currently in a bear market, with stock markets also rocking (down 20 percent from their recent highs).
This is why even large investors are less willing to risk their capital. People like you and me – not rich hedge fund owners or businesses – have less money to invest in anything.
In these uncertain times, many people are reluctant to put money into something as volatile and unpredictable as cryptocurrency.
If you put your money in it and the price goes down or you can’t access your crypto wallet, you lose your money. Financial authorities have no way of controlling or protecting it.
The question is, why now?
Last month, two lesser-known but less significant currencies went bankrupt, shattering investor confidence in the market.
A growing number of people have decided to shrink their living space.
Since the price of Bitcoin is proportional to its demand, the more people sell it, the lower its value will be. As a result, a growing number of people feel compelled to sell as they expect prices to fall; So, the cycle continues.
Katie Martin, market editor of the Financial Times, argues that Bitcoin has no underlying value because there are no bricks and buildings, income streams or underlying businesses.
‘The price is simply and completely what people are willing to pay you,’ he says
“When that happens, people get scared because there are no floors if enough people try to leave the building at once. If enough people give up or are forced to sell, it could be trading at $ 10,000 tomorrow. There is nothing to stop it. “
Right now?
This is already the challenging environment where Bitcoin works, and in the last twenty-four hours, we’ve seen these developments:
- The world’s largest cryptocurrency exchange, Binance, has temporarily suspended all bitcoin withdrawals due to a technical problem. Was blamed for a “stuck transaction”, but not everyone was sure.
- Celsius, a crypto lender, has claimed “extreme market conditions” as the reason for their withdrawal. Coinbase said it would lay off 18 percent of its employees, citing “crypto winter” as a contributing factor.
- Frightened bitcoin investors were selling more and more bitcoins.
You have increased our interest in the first two. Think about what would happen if your bank suddenly stopped allowing you to withdraw money for no apparent reason. You will arrive at the nearest cash machine in minutes with everyone else, which will cause even more concern.
Is there a possibility of making a difference?
So, to keep Bitcoin stable, those who have it should hold on to it and new buyers should start buying it. This has happened before.
Fans of cryptocurrency will tell you that now is a good time to buy it as it is cheap, but you have to wait to turn it around before you can get your money back. It has always been.
Money is drawn for “fast rich-rich” stories and celebrity approvals because they are so believable.
Tesla CEO Elon Musk has spoken out on Twitter about his love for cryptocurrencies, and his firm, Tesla Motors, spent $ 1.5 billion on bitcoin in 2017.
Unwrapping the wrapper
There are many risks involved in investing in the Bitcoin market. There is a risk of losing money if you invest in cryptocurrency and NFT. There are times when you may lose sight of your core values. Do your research before you invest your money.
A B2B SaaS, NFTICALLY, lets you create your own white-label NFT firm or NFT marketplace without technical knowledge. For more information on NFTs, please visit our blog. Additionally, you can learn how to set up your own NFT Marketplace.
https://ift.tt/8Bi7vLu
Post a Comment
Post a Comment