The last few days have been catastrophic for cryptocurrencies.
The value of Bitcoin has plummeted in a short time. AOP
Bitcoin and other cryptocurrencies have fallen sharply. Bitcoin’s share price fell below 20,000 euros on Wednesday, reaching a low of nearly 60,000 euros in October last year. When looking at the exchange rates of cryptocurrencies, only red numbers are received.
One of the main reasons for this is experts according to the economic downturn as well as inflation, which has risen in the United States to its peak in 40 years. Investors are looking for more stable targets, so cryptocurrencies can be seen as too high a risk in the current situation. CNBC said the cryptocurrency market on Tuesday shrank by as much as $ 200 billion last weekend.
The more people sell Bitcoin, the more its price goes down because it is tied to the desirability of a cryptocurrency: the price is what people are willing to pay for it. When the price is seen to fall, more and more people are selling, creating a spiral.
Problems with marketplaces
The last few days have been particularly awkward in the cryptocurrency market. This is due, among other things, to the global cryptocurrency of Binance interrupted all Bitcoin withdrawals for a few hours. The reason was said to be a trade jam that not everyone swallowed.
In addition to this, a large U.S. Coinbase cryptocurrency marketplace announced they are just about to lay off up to 18% of their workers (around 1,100 people) due to a worrying situation, also known as the ‘crypt winter’.
In May, again, a major dollar-linked stabillecoin, TerraUSD, lost value along with its sister crypt currency, Luna.
These events alone have caused panic among investors, which in turn has led many to sell their holdings in krypto.
Although the situation now looks bleak, cryptocross investors have reassured people that they are buying cheap in such a situation and sit on their investments until the situation changes. In practice, the price would start to rise when Bitcoin owners do not sell their investments and others start buying it again.