The cryptocurrency market continues to disappoint its investors as another significant value slump occurred last week. It is the first time since December 2020 that the Bitcoin has gone below $25000. The market resumed Monday with the most prominent cryptocurrency at a pinch of over $19000. In light of these events, the recent slumps are posing huge concerns over the market’s credibility. Yes, crypto is a volatile market; there is no doubt about that. But still, many investors show trust in the market, and all they have received in recent times is a disappointment. This article has covered possible reasons for these collapses and an insight into what might happen in the future.
GLOBAL CONCERNS AND VOLATILITY IN CRYPTOCURRENCIES
Bitcoin, Etherium, Luna, and many other cryptocurrencies have recently seen a downfall. The significant chunks of these slouches started with the Russian-Ukraine war. Global stock markets have plummeted, and businesses fear high-interest rates and inflations. As for crypto, it works on anticipations. Therefore, the fear and threats have had an adverse effect on the market and thus resulted in a downfall. The biggest concern with cryptocurrency is its volatility. It does not have stable influencing conditions based on business and processes. Instead, it works on speculations of being good and evil. These speculations do not always come true and thus result in significant slumps and losses.
MAJOR HALTS IN CRYPTOCURRENCIES
Recent developments occurred with Celsius Network freezing the cryptocurrency withdrawals and transfers. The Celsius Network is considered a major US cryptocurrency lending company. However, they have frozen further withdrawals and transfers, citing extreme conditions. Moreover, China has imposed a crackdown on cryptocurrencies. Reports stated Russia is halting the processes as well. However, after the invasion, many crypto exchanges are putting a halt on business with Russia.
Moving forward, Bitcoin and other cryptocurrencies might rise. The volatile market does not always play negative. The recent crash came on grounds with negative news and events. Inversely, the tables might turn with the settling of affairs and some positive information in the future. With the world moving towards digitalization, blockchain, and cashless currencies, crypto holds a promising future without a shadow of a doubt.
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