Why the crypto market has been so volatile recently

In today's article, I'm going to be covering why exactly the crypto market has been so much more volatile recently. I'm sure it's been on a lot of your thoughts lately on the market so I thought I would answer why the market is acting the way it is. Now I don't believe we are going to see the volatility we are experiencing right go away any time soon. There are a lot of reasons for that. Which we are gonna cover in today's article. So without furthermore let's get into today's important article.     

The FED

So what has had the most impact on the market currently are the FED's interest rate reports. The market had already taken into effect a 100 basis points increase in interest rates before the FED had made any announcements. This is why we saw dumping during the week as of writing this article (7/28/22) before the reports. But on the day of the announcement (7/27/22) the FED announced a 75 basis points increase. Which then caused the market to skyrocket increasing the price of nearly every cryptocurrency.  

GDP reports

Another factor that has been affecting the market has been the United States GDP report which came out today. Which reported that the United States had a -0.9 shrink in GDP last quarter. This in turn has stalled any more crazy growth that we've been seeing in the last 24 hours. However, this doesn't mean that the market will dump or pump but that most likely the market will start trading sideways. Especially as we transact into the weekend when trading activity usually declines.  

Stock market

One last key factor that has been at play in the market has been the U.S stock market. The stock market has been bringing down the crypto market for a couple of reasons. One is that the NASDAQ 100 hasn't been performing so well. Which has affected crypto because as of now the NASDAQ 100 is correlated to the cryptocurrency market. Second, the S&P 500 hasn't been performing as well either recently. Which has just had a bad toll on nearly every speculative stock and commodity. So Until everything starts to level out and stabilize I don't think that crypto will start pumping anytime soon again.  

My Final Words

If you enjoyed the blog leave a like and share it on social media. Leave me some feedback with your comments to let me know how I did. Let me know what you liked and what you didn’t so I can improve the blog. All your likes and comments are deeply appreciated. They motivate me to write more and better blogs and help me expand and help spread the word. Make sure to follow the blog to stay up to date. You can also follow the blog’s Instagram where I post daily content as well as letting people know when my new blog post drops and I also give out my crypto trades on there. Then there’s also my website where you can put in a submission form to let me know what topics you want me to cover along with other things such as referral codes and affiliate links. Thanks for reading hope you enjoyed it.

Follow The Blogs Instagram

Link To My Website