Bitcoin: Why is the biggest cryptocurrency crashing?

 Bitcoin: Why is the biggest cryptocurrency crashing?

Bitcoin 

explosion The first rule of writing for Bitcoin is: do not write about Bitcoin. The story of the world-famous cryptocurrency is moving fast, and its fans will soon be queuing up to let you know that you have made a mistake. But write about it now, because the last 24 hours have been a major Dame disaster for cryptocurrency - even Bitcoin rates. What's going on? As I write this, Bitcoin trades at $ 21, 974 (£ 18,000). Decreased by 25% in the last five days, with its Bitcoin What Happens to Bitcoin? Very low price in 18 months. A peak of $ 70,000, in November, is felt in the past. Chart showing depreciation of bitcoin The graphs are all red, and they all point downwards. Why? Experts say that this is due to global warming. Things don’t seem to be going well in the crypto world alone. Inflation is rising, inflation is rising, interest rates are rising, and living costs are rising. Stock markets are also in turmoil, as the S&P 500 in the United States is in the bear market (down 20 percent from its recent high). As a result, even huge investors are hesitant to put their money in the market. And many ordinary investors - not hedge-fund owners or wealthy companies but people like you and me - have no investment in anything, a full stop. To many, investing in something volatile and unpredictable like cryptocurrency sounds like a big risk in these times. Because it is not regulated or safeguarded by financial authorities, if you invest your savings in it and it loses value, or if you lose access to your crypto wallet, your money is lost. Why now? Last month we saw two very low but significant coins fall - and this lowered the confidence of the whole market. As a result, more people are opting to sell their homes. Bitcoin's value decreases as more people sell it, because it works that way - its worth is linked to its desire.. This is the result of a confrontation with many traders because they see a drop in prices ... and the cycle continues. The story continues Unlike other traditional assets, Bitcoin has no real value for savings - no bricks and mortar, revenue or core business, FT market planner Katie Martin says. "The price is different and whatever people are willing to buy from you," he tells me. "That's when people start to panic because, if enough people look outside, nothing matters. Nothing will be able to prevent them from trading for $10,000 tomorrow if enough people stop or are forced to sell." Why now? So that is the already difficult Bitcoin platform - and then within 24 hours see this development: For a few hours, Binance, the world's largest crypto currency exchange (essentially a crypto currency trading platform), has halted all Bitcoin withdrawals. He said this was due to "volatile trade" - however, not everyone believed in it Cryptor Celsius did the same - but cited "worse market conditions" rather than technical issues. And now, the Coinbase exchange has announced that it is laying off 18 percent of its workforce, citing, among other things, a "crypto winter." More Bitcoin is being sold by bad investors. The first two caused panic. Imagine that you could suddenly withdraw cash from your bank account, or you might hear other people say no. You will be at a nearby cash machine, along with everyone else, at a recorded time, and this in itself may cause further confusion and panic. What can change things? In short - in order to be stable, people who no longer have Bitcoin will have to stick to it and some will have to start buying it again. This has happened before. Crypto enthusiasts would tell you that now is a good time to buy because it is cheaper - but you must maintain your strength and keep an eye on the corner turn. One of them posted me on Twitter earlier: "The pump will always happen." Beneficial stories of those who "get rich quick", as well as high-profile celebrity recommendations, are attracting new revenue. Matt Damon has put forward a crypto ad that played in the Super Bowl Elon Musk wrote on Twitter several times about his love of crypto - and his electric car company Tesla invested $ 1.5bn in Bitcoin last year. But investment advisers encourage greater caution. "Actually, somewhere only the brave should come in," State Street Advisors executive director Altaf Kassam told BBC Radio 5 Live's Wake Up To Money program. In October 2021, Hollywood A-lister Matt Damon unveiled a crypto advertisement with the motto "Good Luck for the Brave.". It played in the Super Bowl and has been viewed 28 million times on Twitter and YouTube. However, the "brave" who bought Bitcoin during the ad probably will not now feel "good" - it was probably three times more expensive than it is today.