Why is Bitcoin, the World’s Largest Cryptocurrency, Crashing?

Why is Bitcoin, the World’s Largest Cryptocurrency, Crashing?

Bitcoin News
June 16, 2022 by Diana Ambolis
363
The story of the world’s most well-known cryptocurrency unfolds at such a dizzying speed that you’ll soon be surrounded by people who will tell you how wrong you are. In any event, even by Bitcoin standards, the previous 24 hours have been terrible for cryptocurrencies, and we feel compelled to write about it. Bitcoin and
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The story of the world’s most well-known cryptocurrency unfolds at such a dizzying speed that you’ll soon be surrounded by people who will tell you how wrong you are. In any event, even by Bitcoin standards, the previous 24 hours have been terrible for cryptocurrencies, and we feel compelled to write about it.

To put it mildly, if you’re a Bitcoin aficionado, you’ll be aware that the entire crypto market is in chaos.

What exactly is the problem?

One bitcoin is currently worth $21,156. It has dropped by a quarter of a percent in the last five days, to its lowest level in 18 months. It’s been a long time since the November high of almost $70,000.

For what purpose?

This, according to experts, is attributable to the changing environment throughout the world. Simply because we’re talking about cryptocurrency, things aren’t looking good. As inflation, interest rates, and the cost of living grows, making ends meet is becoming increasingly difficult. The stock markets are also teetering since the S&P 500 is currently in a bear market (down 20 percent from its recent high).

As a result, even huge investors are hesitant to put their money at risk. People like you and me — not hedge fund owners or corporations – have less money to invest in anything.

Many individuals are hesitant to invest in something as volatile and unpredictable as cryptocurrency in these uncertain times. You will lose your money if the value of your crypto wallet drops or if you are unable to access your crypto wallet. It is impossible for financial authorities to control or safeguard it.

Why now, specifically?

Two lesser-known but equally important currencies went bankrupt last month, shattering investor trust in the market.

Individuals are increasingly deciding to reduce their living space.

Bitcoin’s value is proportionate to its demand. Thus as more people sell it, its value will decline. As a result, a rising number of people feel compelled to sell since they expect their property’s value to plummet; thus, the cycle continues.

According to Katie Martin, a Financial Times markets editor, Bitcoin has no inherent value because there are no bricks and mortar, income streams, or underlying businesses.

She explains, “The price is simply and entirely what people are prepared to pay you for.”

“When that happens, people become fearful because there is no floor if too many people are attempting to exit the building simultaneously.” It might trade at $10,000 tomorrow if enough people give up or are forced to sell. Nothing will be able to stop it.”

Also, read – 4 Reasons You Should Hold On To Bitcoin Right Now

What are you doing right now?

That’s the already difficult context in which Bitcoin operates, and we’ve witnessed the following events in the last twenty-four hours:

Due to a technical issue, Binance, the world’s largest cryptocurrency exchange, has blocked all Bitcoin withdrawals. This was attributed to a “stuck transaction,” although not everyone agreed. Celsius, a cryptocurrency lender, also blamed their withdrawals on “extreme market circumstances.” Coinbase announced that 18 percent of its employees would be laid off, citing the “crypto winter” as a contributing reason.

Frightened Bitcoin investors were selling even more Bitcoin.

In the first two, you’ve aroused our interest. Consider what would happen if your bank suddenly stopped allowing you to withdraw funds for no apparent reason. You’d be at the nearest cash machine with everyone else in minutes, producing even more anxiety.

What has the potential to change things?

To keep Bitcoin steady, people who already own it should keep it, and new buyers should start buying it. This has happened in the past. Cryptocurrency enthusiasts will tell you that now is a great time to buy because it is so cheap, but you’ll have to wait for it to turn the corner before you can get your money back. This has been the case for a long time.

Because they are so compelling, money is drawn to “get-rich-quick” stories and celebrity endorsements. Elon Musk, the CEO of Tesla Motors, has been vocal about his love of cryptocurrencies on Twitter, and his company spent $1.5 billion on Bitcoin in 2017.

Final Thoughts

Investing in the bitcoin market comes with a lot of dangers. If you invest in cryptocurrencies and NFTs, you risk losing money. You may lose sight of your essential ideals from time to time. Before you invest your money, do your homework.