why is cryptocurrency crashing right now? why is the crypto market falling, and is there hope for investors or further potentials for cryptocurrency investors
As of last year, the majority of the cryptocurrency market was beginning to rise to surprisingly amazing levels, and that had only encouraged investors, new and returning; alike to place more hope in the cryptocurrency market.
The the reality of the catastrophic fall of the crypto market so rapidly in less than a year has brought investors into giving a questioning stare of having to add cryptocurrency to their investment portfolios.
Cryptocurrency experts and analysts are now brought to question the unexplainable change that has befallen the cryptocurrency market. what is the fate of cryptocurrency, and why is cryptocurrency crashing right now.
Thanks to the positive effects revolutionary contributions have brought into the digital age, cryptocurrency was regarded as the future of money upon seeing its potential in the global market. We cannot go on further without analyzing what factors brought about the current state of the cryptocurrency market.
Why Cryptocurrency is Crashing Right Now
One of the major happenings was the mage crash which occurred in November last year. The value of the global cryptocurrency market at that time was $3 trillion.
The consequences of the crash brought it down to as low as $1.28 trillion. You can tell how huge that loss was. Yes — it was massive.
The fear of the aftermath of this event had gotten investors to battle with their portfolios after noticing the major and most popular ‘stable’ cryptocurrencies beginning to take a downward trend.
Several factors had contributed to ‘The Big Crash,’ and if such factors continue to come into play, investors are most likely going to be forced to move their hopes away from investing in the cryptocurrency market any longer.
One of the major reasons why cryptocurrency is crashing right now is the actions and crackdowns from the government, which has also contributed to the downslide of the crypto market.
An instance is the recent happening with the U.S Federal Reserve which had flagged down digital assets. And when investigated, one of the cogent reasons for their actions was centered on the rise of interest rates of cryptocurrencies which had reduced the risk appetite of investors, and this is currently one of the many things that are bringing the crypto market to a meltdown.
Another reason why the crypto market is crashing right now is the total shutdown of Bitcoin miners throughout the country of China, and the ban they had placed on payment companies and financial institutions from dispensing services that are crypto-inclined.
Another possible factor that is responsible for the current crash of the cryptocurrency market can be analyzed from the major cryptocurrencies that dominate the market. Talk about TerraUSD, for instance; this digital currency had a valuation of about $19 billion dollars early this year, and other common cryptocurrencies like Bitcoin and Ethereum clocked her all-time highs at respective values of $67,802.30 and $4,800 as at last year’s November. In a combined sense, the crypto market has now lost an approximate value of $1.3 million in a space of 14 days.
An increase in the interest rate is one other reason why investors are now discourage from venturing into the cryptocurrency market.
It’s heart-wrenching to watch the market taking one hit after another, and there has been no positive sign that there will be an improvement in the market anytime soon.
TerraUSD is currently struggling after a huge meltdown last week, and the same fate has been bestowed upon other digital currencies like Luna and Tether.
Bitcoin, according to the very last update I had followed up on, now trades for as low as $29,844. Now, that is way lower than the last dip they experienced in December 2021.
Any Hope For Further Investment?
And now, we ask the question that investors all around the globe are trying to get answers to. What is the fate of the global cryptocurrency market? Are they to continue to expect an improvement from the market? If yes, how soon?
Will they continue to experience the interest rate hikes upon the cryptocurrencies? Should they expect a continuous reduction in the value of the major cryptocurrencies in the market?
Analysts and experts have come to make a statement for investors to try and give a little ounce of hope to cryptocurrency.
You can view the current prices and trends of the cryptocurrency market here
While some people continue to believe the continuous dip in the fall of digital currencies buys them the opportunity to purchase more crypto coins, a majority of the investment population is now losing faith in the digital currency market.
I guess too much focus shouldn’t be fixed on the current situation. Even when we are not getting well-convincing answers to the current state of the market and what to expect, it’s still advisable to hold your horses, but also keep a close watch on the currents crypto market trends.