June 3, 2023

Dubai Week

Complete Dubai News World

Why is the cryptocurrency market crashing?

Why is the cryptocurrency market crashing?

It is always difficult to pinpoint the exact reason behind the decline of the cryptocurrency market, but the 3 main reasons clearly obscured the crypto market and caused it to lose nearly a trillion dollars in its market value last month.

Bitcoin recovered some of its losses After touching $ 45,000 yesterday morning, it reached $ 48,000 on Saturday.

The total market capitalization of cryptocurrencies fell from $ 2.6 trillion on Friday to $ 2.07 trillion on Saturday, and the total market capitalization reached $ 3 trillion last month.

The famous investor, Louis Neville, identified 3 reasons behind the big decline in cryptocurrencies, which lost nearly $ 600 billion from its market value in a single day, he summed it up.

Feed steps

Neville said talk of Federer’s tapping had frightened investors with speculative assets. “The declining US Federal Reserve could lead to the bursting of bitcoin and the cryptocurrency bubble,” Neville warned.

Navielier explained that the Fed’s reduction “should create a revision in risk assets, part of which is bitcoin.” He also warned that the price of bitcoin could fall below $ 10,000.

Corona omigron

It is clear that the uncertainty surrounding the eruption of the Omicron variant and its severity – and the effectiveness of the vaccine, which has not yet been determined – has led investors to flee from risky speculation.

On the other hand, many year-end investors look to lock in profits and withdraw money from the table.

Despite recent declines, Bitcoin has risen 66 percent since the beginning of the year, hitting $ 29,400 on January 1st.