08 Dec 2021 Anthony Lehrman
Why Is Crypto Down?
It is fair enough to say that cryptocurrencies have encapsulated a large part of the global population’s attention and continue to be trending in a large proportion of people worldwide. Therefore, whenever the price goes up or down, fans have no other choice but to go berserk about what’s happened. The same happened when Bitcoin and other prominent currencies crashed Monday night on 6th December. This compelled thousands of people to get wiped out from the market.
Bitcoin’s sunk value came close to $60,000 after having reached its highest peak of $69000 on the 10th November. Most prominent coins managed to pick themselves up after the crash but sank again the following Thursday. A few days later the price of Bitcoin dropped to around $56800, which came as a shock to many and most prospective investors decided to hold back their investments.
Ever since the major crash, investors have lost around 17% of the value of the coin, which came as a setback to everyone. Now, Ethereum is being valued at $4100 while Ripple, Cardano, Solana and Shiba Inu have left the fans tattered and shattered. Unless the original prices aren't resumed, prospective investors won't even think of coming close to the idea of putting their money at stake. This is why many people turned to converter platforms such as safetradebinaryoptions to be assured about how much they’re investing. On the contrary, not knowing the exact value that should be invested will keep an individual confused about their money.
What Are The Reasons Behind The Crypto Market Crashing?
The crypto market is driven by various forces and different factors could lead to a market crash. These factors and external to the market influences are widely debated by experts and enthusiasts.
One of the major reasons for the crash could be the SEC not acknowledging spot bitcoin, which would have allowed for billions of money to be poured into the crypto market. Even China has decided to bring down the number of bitcoin miners, which became the sole reason for the crash last year.
Since cryptocurrencies are highly volatile, any sort of intrusion can bring great losses to everyone. According to China’s national development, they said that the idea of introducing punitive electricity prices would open up several opportunities for the residents to thrive in the market. On the other hand, the dollar has been strengthening, becoming more influential across markets. However, it also appears that it will strengthen against crypto.
This is fair enough to say because the interest rates are at an all-time high, which will eventually cause inflation. Furthermore, when Twitter’s CFO made sweeping statements, it must have caused a rage in the market. He also claimed that investing in any sort of crypto-asset wouldn’t make a big difference to the people right now.
He also believes that there are larger issues, which need to be acknowledged. While the liquidations have been low, the funding rates are getting flat.
What Is the Right Time to Invest in Cryptocurrency?
Simply put, everyone takes a big risk when they decide to invest in cryptocurrency. Because such currencies are decentralized and not controlled by anyone, one can expect anything to happen in the future. Every inch of the cryptocurrency investment is risky, but coins like Shiba Inu are highly volatile and could also be prepared to lose every inch of your investment.
According to FCA, investing in crypto investments or assets is inclusive of taking big risks with your own money. On the other hand, a famous senior investor has claimed that stepping foot in this industry entails big risks, so one must be prepared for it. When consumers decide to invest in a product as such, they should also be mentally prepared to lose all of it In the future.
Because a typical cryptocurrency is seen as an equivalent of the traditional banking method, it is cheaper to move around with funds that are not being regulated by a certain government.
However, the crypto experts have claimed that there’s always a positive side to the story as well, so traders don’t have to get emotionally damaged by losing their investment. It is expected that the crypto prices will go up in the future, hence, allowing everyone to feel safe about not losing the value of their funds.
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