Why crypto market crashing again?
Crypto trading is risky business and people involved in it knows the circumstances of its decline currently. They also keep hawk's eye on movement in financial Field especially in federal reserve USA and European Union treasury departments.
A question rise in debate that why Crypto Market Crashing again? We have to understand the economics of demand/ supply that how it works. Whenever demand went high and hurdle comes in supply the prices went high and inflation grips the market. European Union and USA are in high
inflation wave which causing slow down the economy. Now the finance departments are at high alert to bring back the inflation down gradually.
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US dollar is going strengthen against euro in this week which is most safest heaven for investors. Euro is under pressure due to energy crises in Europe. Ukrainian/ Russian war made it more worst. If any country have energy crises, how it will run its factories and mills? That's why financial pressure on Euro forcing the authority to took quick measures.
The price of BTC falls down exactly from same moment when high liquidation dumps and investors withdraw their investment from Crypto market and start investing in dollars due to interest rate announcement.
In second part we know in inflation the prices of commodities thrown up till the demand goes down. Once demand reduce, the prices will go stable by time. Here is another opportunity for business hubs to invest more and Jerome has strong commitment to take compulsory steps.
The bonds investment is another factor in slowing down of Crypto market. European Union announced its euro bond for 10 year term with very good maturity rate which got attractions of investors to get certain high profit by investing in bonds. American and Japanese bonds are already in the market yields high return promise.
Now the recent developments in crypto verse hits more worse and rapid declining seen as ,
✏️Almost $2.0 billions dollars quick liquidation made things red as BTC sharply came to $94,000 with -8.5% . And we know when BTC Fall, everything in crypto follow the trend.
✏️The Royal family of Bhutan send 406 BTC to Singapore base crypto firm QCP to sell.
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✏️New quantum chip by Google made another threat in crypto market as users have heavy concerns on it . Mostly have argue that new quantum chip will enable hackers to hack their crypto assets.
Another alarming affliction is on the way which will be possibly biggest in the Crypto history. That is the Tether collapse.If it happened, the Crypto market will be in black tunnel.
I am not a financial expert or analysis reader but I try to compute some news around which causing to slowing down the Crypto market and no any miracle expacting in recent days. May this bearish will go further more till end of the year.
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Note: The article also published on my read.cash wall.
Lead image taken from Pixabay.
Cheers,
Amjad