There are uncertainties about when the sharp decline of crypto currencies, which has replaced the rapid rise with a rapid decline in recent days, will end. Cryptocurrency investors and producers are hesitant to exchange the cryptocurrencies they own. One of them is mine. After this hard shower I panicked a lot. After the recommendations of the relevant commentators, I saved myself from this panic situation. It seems like the shower will fall a little more now. The date of 20 March 2021 is very important for us. I recommend that all investors pay attention to this date.
According to economists, this sudden decline in crypto currencies started with the comments made by the economy ministers in European countries, and it is said that those who exchanged virtual currencies in their hands with the effect of these comments affected this decline. The volatile and volatile nature of the crypto money market has also fueled this situation.
The rapid decline in cryptocurrencies was due to some resistance breaks after investment sources and rapid growth, and as a result, cryptocurrency investors exchanged their possessions for fear of loss. . The reason for this situation can be attributed to the fact that it is a kind of small market. At the same time, a small number of currencies can change Bitcoin value more than expected. As the value of Bitcoin increases and the market volume expands, the volatility experienced decreases over time.
This volatility index in bitcoin exchanges does not have an index that is generally approved. The reason this; Crypto coins are very new compared to other currencies.
Here is the answer to the question of why Bitcoin is falling ...
There are many reasons why Bitcoin and other cryptocurrencies are falling in value. Regulation, security problem in cryptocurrencies, government intervention and the risk of leakage as a result of cyber-attack are among the main reasons.
The statements made by the governments of South Korea, India and China in January were one of the biggest factors in the shaking of the crypto currency exchange. In the comments made by these countries, it was spoken that new regulations would be made on cryptocurrencies. As a result of such statements made against virtual currencies, there were serious decreases.
External Factors That Cause Cryptocurrencies to Fall
Credit Card Invalid When Buying Crypto Money
All banks in the UK and Lloyds Banking in the USA have created various restrictions by turning down their customers who want to buy Bitcoins with their credit card.
A similar situation occurred in the financial institutions of the USA. Bank of America, Citigroup and JP Morgan Chase reported that cryptocurrencies cannot be purchased with credit cards.
Use in Illegal Transactions
Bitcoin, which is frequently used for illegal money smuggling and drug exchanges due to transaction confidentiality in trading transactions; The trust in Bitcoin as the preferred choice of real estate robbers and digital fraudsters has led to a significant decrease. The measures taken as a result of such illegal transactions, which have become widespread recently, are increasing day by day.
Regulatory Lack
The most important reason why Bitcoin is not viewed in moderation in country governments is that they cannot intervene in crypto currency exchanges. For this reason, many governments are making negative statements about Bitcoin. Governments that prevent cryptocurrencies from being stored and backed by valuable assets are trying to make cryptocurrencies ineffective.
Facebook Advertising Ban
Facebook rejected ad requests for cryptocurrencies, and recently banned advertisements in this area. He also said he would make this ban on Instagram.
Judicial Process Tracking
Following the investigation decision opened as a result of the hacking of Tether (USDT), many investors converted their cryptocurrencies into cash, causing a price decrease in Bitcoin.
In previous times, after the emergence of such agendas and the negative comments of most governments about cryptocurrencies, Bitcoin had sudden drops. How far this dream will continue is not known exactly. I recommend that investors follow the stock market.