Cheaper currencies are making more profit, know why cryptocurrency is going through bad times?
With the end of the year 2022, the cryptocurrency market has fallen to a great extent. This is a very bad time for crypto currency, if seen, the price of the biggest cryptocurrency bitcoin has also fallen by more than 75 percent in 1 year. And this is not only because of the scam or bankruptcy in FTX, but there is also a reason that there is no liquidity in the market as before.
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Nowadays, the discussion of crypto currency is very loud in the market, even though this digital currency is declining, but still the talk of this crypto currency is heard everywhere.
People had considered investing in crypto currency as an easy way to become rich in a very short time, but recently, due to the strictness of the governments of many countries around the world regarding this digital currency, many crypto currencies ranging from bitcoin to The rates have suddenly come down from the sky.
Why is crypto going down so hard ?
The recent bankruptcy of one of the largest crypto exchanges in the cryptocurrency market, FTX, has left all crypto investors worried. This trillion dollar crypto currency industry has been badly affected by the bankruptcy of this crypto exchange.
But the misery of crypto investors is not over yet, according to a report, some analysts say that the price of bitcoin may fall by more than 25% in the coming weeks. And because of this, a decline can also be seen in other digital currencies of the market.
The price of bitcoin fell by 75% in 1 year
If seen, this year has proved to be a very bad year for crypto currency, the market’s largest cryptocurrency bitcoin price has gone down by more than 75% this year.
At the time of Coronavirus, people openly invested in crypto currency, the main reason for this was that a lot of liquidity was brought in the market by the US central bank and due to this people bought a lot of crypto currency.
The Liquidity in the Market is Decreasing
It has been seen in the recent times that there has been a huge increase in inflation, interest rates are increasing very fast on all sides and now the liquidity in the market is also decreasing.
This situation is not good for digital currency because according to market experts, people invest only their extra money in digital assets, but when there is no money in the market, then from where will people invest?
No Relief Next Year
Market analysts say that due to Fed’s policies, the availability of cash for investment in the market will not be much in the next year also, due to which there will be more pressure in the market. According to him, the slowdown in global money growth will continue in the coming years as well, and less money in the market means more risk on and perhaps that is why investors are exiting the crypto market.
Slowdown in IT Sector
The reason why we are seeing a lot of layoffs in the IT sector at this time is that this sector is slowly coming under the grip of recession. Big IT companies like Apple, Alphabet and Microsoft can also be seen on the decline, and this is the reason why people can also see lack of extra money due to which they are hesitating to put money in digital assets.
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Note – Current price of top Cryptocurrency based on coinbase.com
Bitcoin Current Price
The Bitcoin price is $16,030.61, a change of -3.19% over the past 24 hours as of 10:24 p.m. The recent price action in Bitcoin left the tokens market capitalization at $307,992,508,266.29. So far this year, Bitcoin has a change of -65.15%. Bitcoin is classified as a Currency under CoinDesks Digital Asset Classification Standard (DACS).
Dogecoin Current Price
The Dogecoin price is $0.08, a change of -6.97% over the past 24 hours as of 10:29 p.m. The recent price action in Dogecoin left the tokens market capitalization at $10,350,924,468.12. So far this year, Dogecoin has a change of -55.33%. Dogecoin is classified as a Currency under CoinDesks Digital Asset Classification Standard (DACS).
Ethereum Current Price
The Ethereum price is $1,114.93, a change of -4.97% over the past 24 hours as of 10:31 p.m. The recent price action in Ethereum left the tokens market capitalization at $133,384,414,280.40. So far this year, Ethereum has a change of -69.26%. Ethereum is classified as a Smart Contract Platform under CoinDesks Digital Asset Classification Standard (DACS).
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Hope you liked this article and now you understand why this downtrend in crypto market