Reasons for the crypto market fall
This week, the cryptocurrency market slipped into the red zone – the Bitcoin price fell by more than 30%, followed by altcoins. Bitcoin is currently trading at around $20,300, the lowest since 2020. While investors are panic selling unproductive assets, investors with free cash are waiting for the opportunity to “buy cheaper”.
Crypto critic Peter Schiff’s Twitter
Three months ago, Peter Schiff criticized the first cryptocurrency and called it a “soap bubble”. Thus, in 2011, when bitcoin was worth $1, he declared that he would rather invest $10,000 in gold than in cryptocurrency, since no one knows what will happen to crypto. Since then there has been an increase in Bitcoin’s rate to almost 90,000,000%.
The Nakamotolisk chart shows that Bitcoin’s market capitalization is in for a deeper correction if all halving cycles are taken into account
Experts named three reasons that triggered a fall in the crypto market:
1. Inflation in the US increased by 6%, while the consumer price index increased by 8.6%, – CNBC
2. Tightening monetary policies around the world, including raising the US Federal Reserve's base rate, which encourages people to invest in less volatile instruments, – Bloomberg
3. The collapse of the Terra / Luna ecosystem and the collapse of the stablecoin TerraUSD (UST), which undermined the confidence of investors, – Bloomberg
As of today, Bitcoin ranks 19th in the asset ranking on 8marketcap.com
The cryptocurrency market is volatile but each investor decides whether to jump off a sinking ship or enter a departing train. The main thing is not to be manipulated.
We will keep up to date with the news!