The Crypto market which was predicted at the beginning of the year would reach all-time highs in 2022 since its inception still continues to crash. The crypto market first started to go down in May, when the coin of Terra Luna lost its value and became worthless. Some experts and investors thought that the crypto market would stop being bearish by the end of May, however, the market is still crashing and the most popular digital coin Bitcoin nowadays is estimated at $23 412.
Only eight nations have a GDP greater than what the crypto market lost in less than three-quarters of a trillion dollars. Market capitalization (m-cap) in November 2021 was more than $3 trillion, while the current figure is just around $1 trillion. Such a big decline in the crypto market has several reasons. One of the most recent reasons for the crypto market crash is Bill Gates’s statement.
“I prefer to invest in things that have value,” Microsoft founder Bill Gates declared on Reddit recently, causing the stock to fall. The worth of a company is determined by its ability to produce high-quality goods. When it comes to the value of crypto, “it’s all about what one individual chooses to pay for it.”
In the wake of the Russian invasion of Ukraine and the post-Covid lockdowns, the crypto market has lost trust. Because of the Russia-Ukraine war, the value of the crypto market has gone down dramatically. After going down by the end of February, the crypto market started to recover. After that, until May the values of the major cryptos were fluctuating, and in May the bullish market started to turn bearish. Since the crypto crash in May, the marketplace today continues to go down.
The crypto markets seem to be in free fall due to a big sell-off. The worldwide crypto market worth has fallen below the $1 trillion thresholds to 977 billion in the previous 24 hours, a drop of around 12 percent. According to CoinMarketCap statistics, practically every major cryptocurrency has lost value in the previous 24 hours, with some shedding as much as 17% of their value.
Because of the market’s uncertain situation and extreme volatility the CEO of Tesla – Elon Musk has tweeted about Bitcoin. Tesla’s decision to no longer accept Bitcoin as a form of payment for its goods and China’s crackdown on initial coin offerings, ban exchanges, and warning against speculative trading have all contributed to recent falls in the cryptocurrency market. As Elon Musk is one of the leading and influential figures among digital currency investors, it’s not a surprise that the currency values in the crypto market have gone down significantly.
In a new round of crypto restrictions, China ordered the shutdown of all Bitcoin mining in the Sichuan region and directed banks to cease facilitating crypto transactions.
The People’s Bank of China, the country’s central bank, has now essentially outlawed digital coins after saying that all transactions of cryptocurrencies are prohibited. Markets all across the world are already feeling the effects of this decision.
China’s crackdown on crypto markets and Tesla CEO Elon Musk’s surprise revelation that he was in favor of accepting Bitcoin as a form of payment for Tesla’s services have prompted this announcement.
Even if Tesla’s purchase of $1.5bn worth of Bitcoin shares drove the crypto and its stock market prices surging, that time is long gone for traders.
Bitcoin has fallen by more than 10% in the previous 24 hours. The leading cryptocurrency’s share of the overall crypto market has shrunk to 47.25 percent, a loss of about 0.36 percent. The price of Bitcoin has fallen by 20.86 percent in the previous seven days.
It is also worth noting that the overall cryptocurrency market volume grew by 27% to $110 billion in the previous 24 hours, signaling a significant sell-off by investors. There was $8.66 billion in DeFi volume, which is 7.83 percent of the overall 24-hour volume of the crypto market. The stable coin market volume was $97.88 billion, or 89 percent of the overall 24-hour crypto market volume.
BTC plummeted below $24,000 over the weekend as a result of an ongoing sell-off. Most investors remain negative, according to the crypto Fear and Greed Index, according to Darshan Bathija, CEO and Co-Founder of crypto exchange Vauld. Because of that, it is most probable that the crypto market will continue to decrease in value in the near future as well.
Markets throughout the world have been negatively impacted by recent inflation data (the Consumer Price Index) in the United States.” The two-day meeting of the Federal Open Market Committee in the United States, scheduled on June 14 and 15, will be closely watched by the majority of investors. It’s expected that the Fed will raise interest rates at some point, but most investors are concerned that unless inflation falls quickly, the Fed will be forced to tighten policy more quickly than expected,” he said. As a result, some analysts assume that this will have a drastic effect on other online markets as well like stock and Forex markets.
According to several analysts, the growing cost of food, petrol, and electricity is placing significant pressure on the crypto market, as Bitcoin and Ether have both seen double-digit losses in the last 24 hours. After the consumer price index revealed the biggest inflation since 1981, financial markets throughout the world have suffered a dramatic drop.
The price of Ethereum has plummeted by 13% in the previous 24 hours to $1277. The ETH price has fallen by a third in the previous seven days. This cryptocurrency is now the second most valuable on the market.
On the previous day, the price of Cardano tokens fell by 13% to $0.4504. ADA’s price has dropped by 30% in the previous week. At the time of writing, it is the 8th most valuable cryptocurrency by market capitalization.
XRP’s price has fallen by 8% in the past 24 hours to $0.3214. A 20% drop in XRP’s value occurred in the previous week. It is now the 7th-largest cryptocurrency by market cap.
Dogecoin (DOGE), a popular meme coin, has seen its price drop by 14% in the previous day. The market capitalization of DOGE now places it at number ten. At the time of this post, DOGE was trading at $0.05694.
The Binance Chain currency price has fallen by 10% in the previous 24 hours to $232.25. This is a 25% decline in the previous seven days. As of this writing, it is the 5th most valuable crypto asset.
DOT (Polkadot) price dropped 13% to $6.75, while AVAX (Avalanche) price fell 17% to $15.6. On CoinMarketCap, DOT and AVAX are placed 13th and 16th, respectively. The price of Polygon (Matic) has fallen by 15% in the past 24 hours to $0.439 per token. According to CoinMarketCap, it is now ranked 18th.
Cryptocurrency has a history of surviving major downturns. Even if winter is awful, it comes before spring, which is why the recent discussion about “crypto winter” started. Investors can sit this one out and wait for the market to warm up, so the thinking goes. Even though at this moment the crypto market is in its downturn crypto enthusiasts say that it will bounce back soon.
It’s no secret that inflation is soaring over the world, leaving financial markets with their backs against the wall. Thus, if interest rates increase, all assets that have profited from the central banks’ decade-plus of accommodating policies would be vulnerable.
Because of institutional investors’ interest in bitcoin, its price is more sensitive to interest rate changes and behaves more like a typical stock market. Cryptocurrency trading is no longer dominated by retail investors. Crypto institutions account for the lion’s share of daily trading volumes, and a big percentage of that trade occurs between institutions.
Four years ago, when Bitcoin was trading below $10k, retail traders dominated. We believe the significant connection between Bitcoin and stocks is due in part to the growing engagement of institutions, which are sensitive to the availability of money and, as a result, interest rates.
When it comes to pessimism, it’s the possibility that things will be different this time. Generally speaking, the growth of crypto has been driven by the discovery of new clients. However, it’s possible that this current collapse could be so large and pervasive that finding new clients would be difficult. Finally, those who save their wealth in crypto will need to sell their crypto in the real world, but they won’t be able to find anybody willing to buy it. Everyone in the developed world either lost money or knows someone who did during the crypto meltdown, therefore there will be very little foolish money to invest in the next round.
Because of the market uncertainty nowadays no one can tell with 100% accuracy what will be in the future. There are two types of people when it comes to crypto market forecasting. Some analysts and investors believe that the crypto market won’t rebound quite easily and the process of recovering will last for a long time. Some investors and experts think that the market will soon become bullish because of the significant price drop. Because of that crypto companies have already started to get ready for the future rebound and recover. In order to attract more customers they usually use PR services, similar to the service shown on this website, which increases awareness of the company among the investors. As cryptocurrencies drop in value investors hope that the number of traders who will invest in digital assets will increase with the hope of price growing up in the future, which will lead crypto enthusiasts to get benefits. Crypto has always been and most probably will always be quite volatile. So what will be in the future? It’s all a matter of time.
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