Why Crypto Market Crashing again?

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Avatar for Amjad_Ali_Waince
1 year ago
Topics: Crypto, Trading, BCH, BTC, Learnings, ...

30-8-22

Crypto trading is risky business and people involved in it knows the circumstances of its decline currently. They also keep hawk's eye on movement in financial Field especially in federal reserve USA and European Union treasury departments.

A question rise in debate that why Crypto Market Crashing again? We have to understand the economics of demand/ supply that how it works. Whenever demand went high and hurdle comes in supply the prices went high and inflation grips the market. European Union and USA are in high inflation wave which causing slow down the economy. Now the finance departments are at high alert to bring back the inflation down gradually.

Image source.

US dollar is going strengthen against euro in this week which is most safest heaven for investors. Euro is under pressure due to energy crises in Europe. Ukrainian/ Russian war made it more worst. If any country have energy crises, how it will run its factories and mills? That's why financial pressure on Euro forcing the authority to took quick measures. The federal reserve official Jerome spoke in a symposium on 26th of this month about the inflation rate in USA and the strategy to get it down. Speech of Jerome shows two point agenda. One to increase the Dollar interest rate in steps and to control the inflation in the country.

Now see the impact of that speech of Jerome.

The price of BTC falls down exactly from same moment and investors withdraw their investment from Crypto market and start investing in dollars due to interest rate announcement.

In second part we know in inflation the prices of commodities thrown up till the demand goes down. Once demand reduce, the prices will go stable by time. Here is another opportunity for business hubs to invest more and Jerome has strong commitment to take compulsory steps.

The bonds investment is another factor in slowing down of Crypto market. European Union announced its euro bond for 10 year term with very good maturity rate which got attractions of investors to get certain high profit by investing in bonds. American and Japanese bonds are already in the market yields high return promise.

There are other causes also around the globe which making survival difficult especially BTC. And we know if BTC collapse or crash , all the altcoins went bearish along with BTC.

  • ETH 2.0 merger where validators of proof of stacks has issues and may they / some of them abandoned it.

  • MT Gox of BTC issue.

  • Celsius rumours that it sold its $80 millions BTC. But there are other news as well that Celsius starts fundraising to strengthen its capital.

  • $FEI protocol got scam of 1.88 millions by hackers and going to shut down.

  • Bend Dao stops lending the Crypto against the NFT as collateral. Which was a easy way to get Crypto / fiat as loan against the NFT.

  • Show cause notice to mining companies in USA like marathon on Energy Usage & consumption in mining the BTC.

Another alarming affliction is on the way which will be possibly biggest in the Crypto history. That is the Tether collapse. Our senior writer/ analyst/ Crypto expert @Pantera already warns in its article ," is Tether - USDT is biggest scam of human history.

.If it happened, the Crypto market will be in black tunnel.

I am not a financial expert or analysis reader but I try to compute some news around which causing to slowing down the Crypto market and no any miracle expacting in recent days. May this bearish will go further more till end of the year.

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Comments

Not only in European union the inflation is so high everywhere. And it is causing obstruction for the growth of economy

$ 0.03
1 year ago

Inflation has crushed us so badly this time we are going through such phase which we never observed before

$ 0.03
1 year ago

Cryptocurrency crash will be biggest loss in the world if it happened and crypto BTC especially dropped to zero. Your reasons are very strong that has background about crypto crash as well.

$ 0.03
1 year ago

Current situation of the market is so depressing, I hope it run towards the betterment soon.

$ 0.03
1 year ago

I like this article. For me it is so informative and nice article. At least I got some information about why crypto market collapses. Thank you

$ 0.03
1 year ago

I'm not a crypto trader but i invested fiat in crypto and all in vein now I don't know how with trading i convert my loss into profit.

Now i let it go by just saying that Money has to be lost and i can't do anything for it.

But still i want that now crypto market is stable just like it was

$ 0.03
1 year ago