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Sunday, February 25, 2024

Wall Street sell-off – BTC tumbles!

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In the cryptocurrency market, there is enormous volatility going on. Following this volatility, bitcoin prices went as low as $42,000 at midnight on Friday. Later on, when it started to recover, it reached back to $49,000. Many degrees to the $42,000 mark, it was down by 20% from its all-time highest value. However, when it ended at the $49,000 mark, it was down by 9% just in the last 24 hours. The recovery came back on Saturday but not on Friday. The decline in the prices of coins was not only for bitcoin but for all cryptocurrencies. It is one of the most important reasons. Some widely traded paper currencies across the globe like SOLANA, DOGE and SHIBA INU also lost 1/5 of their value, which is not a small amount of market valuation dubai profit now.

According to market capitalisation, ETH, The second-largest cryptocurrency globally, also experienced a decrease in its prices. It decreased by more than 15% but then recovered by 4% and reached it at a loss of 11% by Saturday evening. Just like any other cryptocurrency, bitcoin and others are notorious and volatile. Also, the reasons behind this volatility are mysterious. Some believe that it is nothing else but the discovery of the Omicron virus across the globe, and however, others believe that it is the Federal reserve’s response to inflation. The reason behind cryptocurrency fall is not yet apparent, and therefore, we can never be sure about the prominent reason for the same. Many heavy leverage cryptocurrency market players play a Crucial role in declining cryptocurrency prices. If they stay in the same position In the market, the crypto market is expected to collapse soon.

Leveraged trading in the cryptocurrency market is an essential cryptos dealing firm like Binance. It is the largest cryptocurrency trading platform globally with the most significant digital coin dealing share. One of the essential things that every cryptocurrency does with this application is contract purchase and sale. Whenever there is a future prediction about the cryptocurrency price, it profits the trading platform and the investors. As long as there is a prediction made, the investor keeps on making money. However, when things go in the wrong direction, everything is ruined. For example, suppose that an investor places the bet to sell cryptocurrencies higher. However, the market started to decline. The cryptocurrency trading platform will get its fees in such a case, but the investor will get nothing. So we have to sell his SH at the prevailing prices, which is a loss for him.

Also, the main reason behind the fluctuating prices of cryptocurrencies in the market is the purchase of huge bitcoins by the President of El Salvador. In September, the country declared that it would accept bitcoin as a legal tender. However, when bitcoin prices declined, El Salvador purchased 150 bitcoins for $48,670. The announcement about the purchases was made on the Twitter handle of the country’s president. Also, it is considered to be the right thing for the cryptocurrency investors, and he also mentioned that he just missed the lowest price by seven minutes. It has led to massive volatility in the cryptocurrency market because it is a country. Every action will have an opposite reaction to the market in which it is playing. El Salvador has entered into the cryptocurrency market with a huge bang, and now, let’s see what happens next.

It is a well-known fact that cryptocurrencies cannot remain stable. They keep on fluctuating all the time, and therefore, predictions about cryptocurrencies is tricky. However, the central banks drive the stocks, and the government settles some authority. Therefore, it makes them highly stable in comparison to bitcoins. If you take a ride in the stock market, you will not get a rollercoaster ride which is not something that investors want. They want to get substantial profit opportunities, and therefore, cryptocurrencies are the best option for them. Also, recently, the stock market was under uncertainty due to the pandemic and high degree of inflation.

Along with the fear of the subsequent economic slowdown amid the pandemic, the Federal Reserve is at risk of inflation. Therefore, the upcoming Chairman of the United States Federal reserve says that it is essential for the country to implement strict monetary policy to have lesser purchasing power in their hands. With less purchasing power, they will demand less and therefore; the prices will automatically decrease.

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