The tale of the most well-known cryptocurrency in the world moves at such a breakneck pace that you’ll soon have a queue of people telling you how wrong you are.
In any case, the last 24 hours have been awful for cryptocurrencies, even by Bitcoin standards, and thus we must write about it.
As a Bitcoin enthusiast, you’ll know that the whole crypto market is in turmoil, to put it lightly.
What’s the matter?
At the time of writing, the price of one bitcoin is $21,156. A quarter of a percent drop in the previous five days has brought it to its lowest level in 18 months. It’s been a long time since it hit a high of over $70,000 in November.
The graph indicates a downward trend, the only way they can go.
What for?
Experts believe this is due to the changing environment throughout the world. Things aren’t looking good simply because we’re talking about cryptocurrencies.
It’s becoming harder and harder to make ends meet as inflation soars, interest rates rise, and the cost of living soars. With the S&P 500 currently in a bear market, the stock markets are also teetering (down 20 percent from their recent high).
Because of this, even large investors are less willing to risk their capital. People like you and me – not the wealthy hedge fund owners or businesses – have less money to invest in anything at all.
In these uncertain times, many people are reluctant to put money into something as volatile and unpredictable as cryptocurrencies.
If you put your money in it and the value declines or you can’t access your crypto wallet, you would lose your money. Financial authorities have no method of controlling or safeguarding it.
The question is, why now?
Last month, two lesser-known but no less significant currencies went bankrupt, destroying investor confidence in the market.
An increasing number are deciding to shrink one’s living space of individuals.
Because the value of Bitcoin is proportional to its demand, its worth will decrease as more individuals sell it. Consequently, an increasing number of people feel obligated to sell since they anticipate a drop in value; hence, the cycle continues.
Katie Martin, a markets editor for the Financial Times, argues Bitcoin has no intrinsic value since there are no bricks and buildings, income streams, or underlying businesses.
‘The price is simply and completely what people are willing to pay you for,” she says.
“When that happens, people start to feel scared because there is no floor if there are enough people trying to leave the building at once. If enough individuals give up or forced to sell, it might be trading at $10,000 tomorrow. There is nothing to stop it.”
At this moment?
That’s the already challenging environment in which Bitcoin operates, and in the last twenty-four hours, we’ve seen these developments:
The world’s largest cryptocurrency exchange, Binance, halted all Bitcoin withdrawals for a short period due to a technical issue. A “stuck transaction” was blamed for this, but not everyone was convinced.Celsius, a crypto lender, also claimed “extreme market circumstances” as the reason for their withdrawals. Coinbase stated that it would be cutting off 18 percent of its workers, citing the “crypto winter” as a contributing factor.Even more Bitcoin was being sold by frightened Bitcoin investors.
You have piqued our interest in the first two. Think about what would happen if, for no apparent reason, your bank suddenly stopped allowing you to withdraw money. You’d be to the closest cash machine within minutes with everyone else, causing even greater worry.
What has the potential to make a difference?
So, to keep Bitcoin stable, those who have it should hold on to it, and new buyers should begin purchasing it. This has happened before.
Fans of cryptocurrency will tell you that now is a beautiful time to purchase since it’s inexpensive, but you’ll have to wait for it to turn the corner before you can get your money back. This has always been the case.
Money is drawn to the “get-rich-quick” stories and celebrity endorsements because they are so convincing.
Tesla CEO Elon Musk has been outspoken about his love of cryptocurrencies on Twitter, and his firm, Tesla Motors, spent $1.5 billion on Bitcoin in 2017.
Wrapping Up
There are a lot of risks involved in investing in the bitcoin market. Cryptocurrencies and NFTs risk losing money if you invest in them. There are times when you might lose sight of your core values. Do your research before you invest your money.
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