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Why Crypto Plummets Again

Crypto Plummets

After the announcement by Russia to ban all crypto related services, the digital asset market fell back into the red. BTC and ETH have fallen by 2.54% and 3.62%, respectively, in the past 24 hours. However, the industry has survived countless bans and regulatory scrutiny. This latest dip may be just the tip of the iceberg for the entire crypto spectrum. Read on to find out why. After all, this is only a temporary blip in the crypto universe.

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While the cryptocurrencies experienced a massive fall this week, the declines were still relatively minor compared to the peaks a few months ago. This is due to a wide range of factors, from the recent sell-off in global stock markets to worries about the financial stability of China’s Evergrande property giant, which has a huge debt load. If the business were to default, it will wreak havoc on the crypto market.

In the past week, investors have become increasingly concerned about a range of factors, including tighter monetary policy and a slowdown in the Russian economy associated with the Omicron variant. Despite all of this, Bitcoin and Ether continued to experience steep drops, with the former down more than eight percent and Ether down almost eleven percent. In addition to these concerns, many “alt-coins” were also down.

Why Crypto Plummets Again

Volatility is one of the main reasons why traders like to trade cryptocurrencies. While it attracts more sophisticated traders, it also provides an opportunity for “mom and pop” traders to earn a profit. This is especially important as the Indian government recently backed a cryptocurrency broker, Bitbank. As such, it’s only natural for the market to experience another correction. The upcoming consumer price index report could intensify the weakness of the cryptocurrency. It could also show a spike in inflation and therefore justify the Fed’s decision to ease the monetary stimulus.

Despite the recent correction, the overall price of cryptos continues to rise. Unlike other currencies, cryptocurrencies are not correlated to the stock market, which means the market will continue to fluctuate. In fact, some experts believe that the currency will be able to move up and down in a matter of weeks. In the meantime, the price of Bitcoin will likely continue to increase until it hits the resistance of the US dollar.

As the market continues to recover, it is possible that other markets will follow suit. While the market is still relatively young and volatile, there is no reason to panic. As of today, the market is still in its infancy and prices are constantly changing. Despite this, there are several factors that may affect its price. Among these, the most prominent ones are the Chinese and Russian governments. The Federal Reserve has warned that they will shut down the easy money that has been fueling crypto prices.

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