If you are curious to know ” Why Cryptocurrency is Going Down Today? ” then this article is written only for you.
Cryptocurrency has become a hot topic for the investors because it is going down continuously. The price of bitcoin has fallen by 60% in the past 6 months, making many investors nervous about their investments. The price has gone up and down so much that people have started to call it a “volatile” currency.
There are many reasons for this decline in the prices of cryptocurrencies. The most popular one being that people are selling off their coins to avoid getting caught up in the bubble burst. This is because they don’t want to lose all their money if the market crashes again.
6 Reasons Why Cryptocurrency is Going Down Today
There are many reasons why cryptocurrency is going down today. One of the most popular reason for cryptocurrency fall is that people are afraid of government banning it.
The market has been falling since December last year and it doesn’t seem like it’s slowing down anytime soon. At present scenario, the top reasons why cryptocurrency is going down continuously are as follows:
- Trade War Between China and USA and War Between Russia and Ukraine.
- Many countries in the world are facing the problem of economic crisis.
- The Federal Reserve Bank of San Francisco said that Bitcoin’s price is driven by speculation, not fundamentals.
- Cryptocurrency prices are falling due to traders cashing out their holdings in anticipation of a major market correction or crash.
- The most popular cryptocurrency Bitcoin has lost its dominance in the market.
- There are concerns in many countries that some cryptocurrencies are being used for illegal activities like money laundering and terrorism financing which will eventually lead to more regulations on cryptocurrencies.
5 Reasons Why You Shouldn’t Sell Your Crypto Now
If you are a cryptocurrency investor, you might be thinking about selling your coins now. However, this is not the best decision as there are still many reasons to hold crypto.
- The market will recover in the future:- Currently not only cryptocurrencies are falling but also all markets are going down like stock market. So, we can say it is a bad time for you as an investor. But, history says that market never always fall down. When good time starts again then market has always recovered with double speed than fall.
- There is no need to panic:- As an investor, there are no any situation to panic. Ups and downs are the nature of market. And, there are no any valid reason that this is the end of cryptocurrencies.
- You would regret it later:- If market start recovering again then you might not get the chance to buy it again at the low price at which you have sold it. Many experts has predicted that bitcoin price can go up to $100000 in 2023.
- The market will not last forever:- Rise and fall are the nature of crypto market. That’s why it is called a volatile market. So, although if market fall excessively due to some temporary reason, it doesn’t mean that this is the end of entire market.
- Bitcoin and other cryptocurrencies have already proven themselves. You can check past history of bitcoin and other cryptocurrencies price. There was always ups and downs in the values, but at last the price had gone up.
How to Prepare for the Cryptocurrency Crash?
People are not always prepared for the worst. This is why it is important to have a plan in place for when the cryptocurrency market crashes.
3 Steps to Prepare for the Cryptocurrency Crash
Step 1: The first step to prepare for a crypto crash is to know what you are investing in. It can be hard to tell which cryptocurrencies are scams and which ones will be worth something in the future.
Step 2: The next step is to diversify your portfolio. This means that you should invest money into different cryptocurrencies so that if one of them fails, you will still have some money left over.
Step 3: The last thing that you need to do before a crypto crash is make sure that you have an emergency fund set up so that if things go really wrong, you will still be able to survive without any financial problems.
Effect of downside of Cryptocurrency on the Economy
The effect of Cryptocurrency on the economy is not yet clear. However, it has been argued that the crypto industry could have a negative impact on the global economy.
So, we can note that this is not a new phenomenon. The dot-com bubble in 1999 also had a similar impact on the economy at that time.
When looking at the dot-com bubble, there are several similarities between it and the crypto industry. Both industries are based on technological innovations and both have seen rapid growth in recent years. This rapid growth has led to speculation and anticipation of future growth which has resulted in an increase in value leading to an unsustainable price bubble.
So this is all about our today’s discussion on ” Why Cryptocurrency is Going Down Today “. I hope this article have fulfilled your need of information. Please do not forget to give your suggestion and feedback in the comment section below. Thank You !
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