Wednesday, June 29, 2022

Why Has The Crypto Market Dropped

Has Bitcoin Dropped Price Crash Sees Billions Wiped From From Crypto Market

Why did the crypto market drop today?

Cryptocurrency bitcoin has experienced a substantial dip this morning – but how far has it dropped and what has caused the crash? Here’s everything you need to know

    Monday saw a major upgrade in the Bitcoin network – leading to a massive upturn in the market, but now the growth has been reversed with the coin’s value taking a major plunge.

    Several other currencies including Ethereum , Solana , and Cardano have all seen a drop in value in the last day, as have Meme Coins, Dogecoin and Shib Inu.

    Currencies have experienced dips of between five and ten percent.

    Predictable Cycles Of Investor Sentiment

    Finally, after six breakout, bullish news, and investor follow-through cycles, the final bullish breakout happened. That occurred on October 15, 2017, when Bitcoin closed at $5862.69. The coin leaped higher once again, drawing in fresh money. By November 26, 2017, Bitcoins weekly chart confirmed a parabolic uptrend as it closed at $9474.62.

    Thats when the mania phase began. As mass greed replaced common sense, some new investors apparently lost the ability to calculate rational risk-to-reward outcomes. Fear of missing out morphed into get on-board at any cost . Once again, the positive feedback loop was at work. Bullish breakouts caused bullish news and opinions to gain ever more acceptance. Later-stage investors continued to buy into Bitcoins relentless, parabolic ascent with little regard to the danger of a blow-off top.

    The Upcoming Cryptocurrency Market Split

    Currently, the digital market is experiencing quite a dispute. The debate about the increase in the Bitcoin block size is in place for some years as of now. The key representatives of two opposing fronts: Bitcoin miners and nodes.

    According to the industry experts, on the 1st of August, we could witness a split. While one part of the Bitcoin protocol supports a change in the protocol, another half would prefer to stick to the current protocol. As some of the industry experts expect, such split could cause a massive Bitcoin depreciation.

    Such scenario makes investors nervous, while some of them are liquidating their Bitcoins into fiat. This could appear as of the reasons why cryptocurrency prices are dropping.

    Moreover, if Bitcoin value will fall, the kind of cryptocurrencies will take the majority of digital currencies with it. Thus, the investors of all cryptocurrencies feel threatened by the 1st August.

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    Cryptocurrency Crash: Bitcoin Ethereum Fall In Value Here Are Possible Causes

    Bitcoin prices fell to their lowest rates since October 13 on Tuesday evening, according to data sourced from CoinDesk a New York-based news site specialising in cryptocurrencies – that cited a number of factors behind the crash. According to the website, Bitcoin’s value depreciated to $55,460.96 last evening, an additional 20 per cent slump from the all-time high of nearly $69,000 that it reached earlier on in November.

    However, as per digital currency analysts cited by Forbes, there seems to be no single factor driving the cryptocurrency crash this week, the phenomenon instead being caused by a multitude of factors ranging from rising selling pressure, end of year profit-taking, as well as speculation.

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    Cryptocurrency market remains in red

    According to data sourced from crypto exchange WazirX, the digital currency market currently remains in red with all the major ones such as Bitcoin, Ethereum, Solana, and Binance taking a price dip. While Ethereum fell by 0.86 per cent to trade at $4,167, Solana also dipped by 1.24 per cent to trade at $4,167. The so-called memecoins Doge and SHIB however, increased their values, though not by a lot their growths were pegged by the crypto exchange at 0.30 per cent and 1.64 per cent, respectively.

    Possible causes behind the cryptocurrency slump

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    Cryptocurrency News: Why Are Crypto Prices Dropping Today

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    BTC is dragging down crypto today

    Crypto prices arent doing so hot on Wednesday and were diving into the latest cryptocurrency news to find out why.

    The biggest catalyst behind todays cryptocurrency news is Bitcoin . The crypto giant saw its shares take a dive today and it looks like other cryptos are moving in sympathy with it. Due to this, theres not much in the way of crypto news pushing the digital assets down today.

    BTCs falling price on Wednesday comes after the crypto made headlines with new all-time highs. This saw it surging higher to almost $70,000 per token. As of this writing, Bitcoin has dropped back down to around $58,851, which is a 5.7% decrease over the last 24 hours.

    So just how much are crypto prices dropping today alongside BTC? Lets take a look at that below!

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    What Does Btcs Stock

    Most cryptocurrencies follow BTC, and when looking at BTCs stock-to-flow chart, we can see that the price tends to overshoot its stock-flow rate, and then rectify. After a high overshoot, such as in 2018 and 2021, the price then seems to plummet below the stock to-flow value, before finally rectifying itself. As can be seen in the below chart, this trend has been consistent so far, meaning that it could be indicative of future pricing fluctuations.

    Based on the predicted stock-to-flow rate, BTC, and therefore cryptocurrency in general is only expected to increase in value. It is possible that another crash will happen, but if the rectifying trend continues, it should quickly resume its path upward.

    But Some Companies Are Using Bitcoin

    The digital payment company Square and its CEO Jack Dorsey also the CEO of Twitter have been big proponents of bitcoin. Overstock.com also accepts bitcoin, and in February, BNY Mellon, the oldest bank in the U.S., said it would include digital currencies in the services it provides to clients. And Mastercard said it would start supporting “select crypto currencies” on its network.

    Bitcoin has become popular enough that more than 300,000 transactions typically occur in an average day, according to bitcoin wallet site blockchain.info. Still, its popularity is low compared with cash and credit cards.

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    Ethereum Better Than Bitcoin For Investors

    This is the claim of a recently uncovered research note from the US banking giant JPMorgan Chase.

    With Ethereum once again on the rise today, its market cap has re-overtaken that of JPMorgans and is now north of half a trillion dollars. The gains can be attributed to its underlying technology, according to the report, with Ethereum deriving its value from its applications, ranging from DeFi to gaming to NFTs and stablecoins.

    Ethereum has already massively outperformed bitcoin in 2021, with a price increase of more than 500 per cent compared to bitcoins more modest 96 per cent rise.

    You can read the full story here:

    What Happened To The Price

    WHY The Crypto and ETF Market DROPPED DOWN! | Cathie Wood

    A on May 18 statement posted on the Chinese Banking Association’s website said financial institutions should “resolutely refrain” from providing services using digital currencies because of their volatility.

    Virtually every cryptocurrency fell after the industry group’s statement. Bitcoin slumped to $30,202 before recovering to $38,038, down 12% on the day, according to Coindesk. Most cryptocurrencies lost between 7% and 22% of their value and shares of Coinbase dropped 5.4%.

    And China isn’t the only country clamping down on cryptocurrencies. Many banks in the Middle East are also barred from dealing in bitcoin, while U.S., regulators appear to be leaning toward more actively monitoring cryptocurrencies. On Thursday, the Treasury Department said it would require businesses to report any bitcoin payment over $10,000, citing an effort to crack down on tax evasion.

    The value of bitcoin can change by thousands of dollars in a short time period. On the last trading day of 2020, bitcoin closed just under $30,000. In mid-April, it flirted with $65,000. The price bounced around after that, with some notable swings, before taking a decidedly negative turn last week.

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    Cryptocurrency News: Crypto Prices Down Today

    • Ethereum is falling 5.2% over a 24-hour period as of Wednesday afternoon.
    • Dogecoin is dropping 7.4% over the same period of time today.
    • Cardano is among the cryptos down today as its price slips 9.3% over a 24-hour period as of this afternoon.
    • XRP is another crypto dipping lower with prices down 8.4% over a 24-hour period.
    • Polkadot closes out our list of decreasing cryptos with prices down 8.4% over a 24-hour period as of Wednesday afternoon.

    Of course, even with cryptocurrency prices falling theres plenty of other news to jump into today!

    Luckily, investors dont have to head far to find it thanks to our daily coverage of the crypto space. A few examples to consider looking into include confusion surrounding Worldcoin , Shiba Inu price predictions, as well as price predictions for ETH. You can get all that info from the following links!

    Why Do We Get Extreme Bitcoin Price Drops

    Bitcoin’s price often drops quickly and seemingly for no reason what are some possible causes for the top crypto’s flutuations?

    This begs the question: how much of Bitcoin price movement can be attributed to legitimate market forces, and is there an invisible dark hand involved? What gives, Bitcoin?

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    How Low Might Bitcoin Go

    “The pullback can easily extend to the former resistance-turned-support near $42,000,” Joel Kruger, currency strategist at LMAX Digital, told CoinDesk. Markets typically shake out weak bulls with a drop to former hurdle-turned-support levels before extending bull runs.

    Bitcoin turned lower from its then-record high of $41,962 on Jan. 8, establishing that level as crucial resistance and slipped to $30,000 in the following days. The newfound resistance was a scaled on Feb. 8 after electric maker Tesla announced its $1.5 billion bitcoin purchase.

    Crypto analysts expect other corporates to emulate Tesla’s decision to buy bitcoin. However, they may look to invest on price pullbacks, according to Lifchitz.

    “$50,000 looks like the first stop for a mild pullback, but a second leg down could take it down to $40,000, while the $30,000 zone looks like the ultimate bottom should things turn ugly in the short term,” Lifchitz said.

    However, Patrick Heusser, head of trading at Swiss-based Crypto Finance AG, said $52,000 is major support, adding that a significant correction may remain elusive, as the derivatives market is no longer exhibiting excess bullishness.

    Also read: Bitcoin Faces Price Turbulence as Market Liquidity Falls, Says JPMorgan

    Bitcoin’s average funding rate, or the cost of holding long positions in the perpetual futures listed on major exchanges, declined below 0.08% early today, having peaked at multi-month highs above 0.12% last week, according to Glassnode data.

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    BTCUSD, weekly: When should you take profits in a runaway bull market? Whenever a key Keltner band is reached or exceeded. Image: TradingView.com

    If there is a simple takeaway from the above chart, its this:

    • Anytime a crypto market touches or exceeds a Keltner band setting of nine average true ranges beyond a 45-period exponential moving average , you should take some, if not all of your open profits.
    • If the above scenario occurs in a parabolic, runaway bull market, take all of your profits, or risk having them taken away from you. Pro traders are exiting there . They know full well that the potential for more upside is very small.

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    Validation Of Hodl Mindset

    To many Bitcoin investors, the data above is validation of the HODL investment mentality. HODLing coins means to not trade, sell, or otherwise lose your cryptocurrency. Its a mindset that promotes patience and long-term growth over speculation and short-term trading.

    While noted cryptocurrency critics like Nouriel Roubini and Peter Schiff have lambasted this mindset, analysts are hopeful that it will work as we move forward into 2020 and beyond.

    One trader made this much clear when he argued that there is a confluence of four fundamental factors that makes him struggle to see a bearish case for Bitcoin. These factors are as follows:

    • Bitcoins block reward halving is taking place in approximately one day.
    • Bitcoins narrative of being a hedge against economic downturns is showing potential, likely referencing how the cryptocurrency is the best-performing asset this year despite a global recession brewing.
    • BTC has seen incredible strength from the $3,700 lows seen in March.
    • Exchange dynamics are shifting in favor of growth, as buying increases and sell-side demand may slow.

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    Bitcoins price fall over the last two weeks has represented a long-awaited pullback from investors testing the strength of support below the higher thresholds for the coin and to stabilise risk incurred by rising inflation and President Joe Biden‘s $1 trillion Infrastructure Bills impact on cryptocurrency trading in the US.

    The Infrastructure Bill, signed into law by the US President on Monday 15 November, contains provisions that could see cryptocurrency brokers or exchanges have to declare the names and addresses of their customers alongside cryptocurrency gains and tax requirements on businesses or exchanges receiving more than $10,000 worth of cryptocurrency or digital assets.

    This week, however, has also seen further signs of concern in global markets with the Indian Government proposing cryptocurrency regulation legislation which would prohibit all private cryptocurrency holdings.

    The Cryptocurrency and Regulation of Official Digital Currency bill drafted by the Indian Government has seen fears of a crypto ban swell in the country, where Bitcoins price dropped in the early hours of Wednesday morning.

    Such moves to regulate the cryptocurrency market come several weeks after the Chinese Government reiterated its ban on cryptocurrency mining and crypo-related transactions, which it declared to be officially illegal in September.

    Through crypto ETFs, investors can speculate on the future cost of cryptocurrencies without having to actually hold it themselves.

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    Bitcoin At One Point Plummeted To $58703 Dogecoin Also Saw A Fall According To Market Experts The Fall In Crypto Prices Was Due To Massive Profit Booking

    Image: Unsplash, Representative

    The top cryptocurrencies fell sharply on November 16. Bitcoin at one point plummeted to $58,703. However, it later recovered and was trading at around $60,066. Ether also saw a down surge and was trading at 7.88% on discount than its price 24 hours ago.

    Dogecoin and Shiba Inu also saw a fall and were trading at 5.66% and 4.75% lower respectively. The value of Cardano and XRP also fell. Binance Coin also fell to $607.23, declining by 7.23%. Meanwhile, in contrast, the Tether rose by 0.09% to $1 in the past 24 hours.

    Why Is Crypto Crashing

    CRYPTO MARKETS DROP | WHAT DOES THE CHARTS SAY?

    A crypto market crash is very unpredictable and its nearly impossible to foresee the next crypto market collapse. The below analysis of the previous crashes in 2018 and 2021 is helpful to understand the processes and see patterns. Its also important to stay informed about the market at all times and be aware of how the policy world can impact cryptos. Doing this will help prepare investors to understand why crypto is crashing, when the next crypto crash will happen, what to do when crypto crashes, and what are the reasons for these cryptocurrency price drops.

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    What To Do When Crypto Crashes

    As stated above, no one can predict the future of the market and no one knows when the next crypto market crash will happen. But that doesnt mean investors dont have options to prepare themselves for these unforeseen events. For example, traders can employ diversification strategiesoutside of crypto to hedge against potential market downturns. Also, more advanced traders can use futures to balance the market direction with their portfolios. So if you see that Bitcoin is going down again, then maybe that is a signal to adjust your investment strategy.

    How Far Has Bitcoin Crashed

    The value of the cryptocurrency has fallen by 6 percent in the last 24 hours.

    The value of a coin had fallen below £43,500 as of Tuesday morning.

    Bitcoin losses currently sit at more than 10%.

    Overall the crypto market is thought to have fallen by some £148 billion to around £1.93 billion .

    It remains to be seen here the bottom of the dip is, as levels now the lowest they have been since late October.

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    Ico Startups Will Cash Out

    A big number of blockchain based firms have raised millions of US dollar in Ethers through initial coin offerings . Some of them have managed to do so even without having any product. Almost $700 million of capital was raised in total in June through ICOs.

    According to the market experts, some of these startups could immediately cash out. Of course, there are serious firms that will hold onto Ethereum in the long-term. However, some of the startups were just looking for a way to make a quick buck.

    In case these firms will cash out, it could cause honest firms to liquidate their Ethers and hold their funds in fiat due to lesser volatility.

    Will Crypto Crash Again In 2021

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    Cryptocurrencies are continuing to increase in value, and so the question that everyone is asking is if there will be another crash? Opinions on this are certainly divided. Critics, including celebrated investor and CEO of Berkshire Hathaway Warren Buffett, predict that cryptocurrency will disappear completely, while supporters, including former Goldman Sachs executive Raoul Pal, predict it to continue to rise and revolutionize the financial market. Despite his U-turns, Elon Musk is another influential person who sees great potential in cryptocurrency, particularly Bitcoin, not just as an asset, but as a faster and more secure way to store and move money.

    Cryptocurrency still has a long way to go, and as it adjusts to the market and makes improvements in speed, security, and carbon emissions, its value will certainly fluctuate. However, judging by its fast recovery and adoption by countries and major players so soon after its fall, confidence in crypto has prevailed. Additionally, its fast recovery despite a sudden loss of over half of its miners shows its robustness, as well as its miners versatility. Whether there will be another crash is uncertain, but with these indicators, it does seem as though cryptocurrency is here to stay.

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