Crypto analysts believe these leverages could be responsible for price volatility in the future if not controlled. How this affects the market prices can influence miners to hedge against future price drops in the coins they’re mining. This means that, like traditional markets, investors use debts to finance the purchase of futures.
#1 Investors are taking too much leverageĪccording to crypto analysts, more investors are taking high risks in the market. However, listed below are factors that could cause a fall in crypto assets value. Many reasons can be responsible for why the crypto market crash is happening, especially in the last week.
In summary, altcoins didn’t live up to expectations this week, as investors remain optimistic about the coming weeks. Meme coins also witnessed a dip in prices as Dogecoin, and Shiba Inu were down by 5% and 7%. Solana fell by 10%, XRP by 9%, while Cardano and Litecoin both lost 7% in price value. Other Altcoins like Solana, Cardano, XRP, and Litecoin also fell in price value. Like Bitcoin, too, Ether reached its ATH last November but looks very far from it right now. The leading altcoin is now trading below the $3,250 mark to cap off a not-so-good week. Ether has also lost about 6% in value this week, despite building a good momentum into 2022. Total Crypto Market cap in USD – TradingViewīitcoin is not alone in this fall, as many altcoins have traditionally followed suit. Crypto analysts believe the Federal Reserve’s aggression with monetary policy this year could be responsible for this recent crypto market crash. The digital assets’ ATH price of $68,789.3, attained last November, currently looks impossible at this rate. The cryptocurrency finds it challenging to cross the $50k mark and now puts itself in a difficult position to hit another all-time high (ATH) price. It lost more than 6% in value this week alone, as it hinges around $44,000 and $45,000. Unfortunately, the digital asset has failed again to have a good week. Bitcoin remains the leading, most valuable, and most prominent cryptocurrency in the market. The last week has seen many crypto assets fall in price as the journey to the top becomes harder. However, the question on the lips of crypto analysts and investors is, why is the market crashing? Unfortunately, the trend these days tends towards loss for investors, as asset prices continue to fall rapidly. Unfortunately, the biggest loss of price volatility is, committing considerable funds to assets and losing it all in a crypto market crash. One of its positives is that investors can quickly cash in on assets immediately after their prices increase.
Price volatility, despite its negatives, also has positives. This is why cryptocurrency trading in many Asian and African countries like Nigeria- Africa’s economic hub, is banned. Financial regulators believe that adopting digital currencies with unstable values will affect their economies and citizens. This volatility has slowed down the adoption of cryptocurrencies in many countries, as its impact worries financial regulators. You can also use the spam-free chatroom provided in our app, to share information on price changes and market situations.ĬoinAlarm is currently available in 8 languages (English, Spanish, Chinese, Japanese, Korean, Russian, Portuguese) and is completely free, and there are no ads to disturb you in any way.Since their inception, cryptocurrencies have been volatile assets with unstable prices at any given period. Whatever exchange you use, whatever coin you invest in, you can track prices through our app or widget, and be alerted when the price or volume reaches a certain target price/volume that you can set.ĬoinAlarm also provides Price Buy/Sell thresholds and arbitrages between exchanges, so that users can make the smartest decisions.
We wanted to make a FREE app that every cryptocurrency investor would find convenient. I’m part of a small team that helped develop CoinAlarm, an app for tracking prices and receiving real-time price alerts (along with so much more!) for ALL CRYPTOCURRENCIES currently in the market.