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”.
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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%.
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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
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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!