The cryptocurrency market is in turmoil these days. A series of negative events and speculations one after another has taken a toll on the entire industry.
- This includes Elon Musks Pump & Dump game to support Dogecoin.
- El Salvador’s failed cryptocurrency experiment.
- Security Exchange Commission’s crackdown on several cryptocurrency exchanges and assets.
- A war between Russia and Ukraine.
- FTX contagion is also responsible for it.
- Introduction of regulators in several countries.
- The introduction of CBDCs is equally important in it.
It is merely a glimpse of the entire turmoil. Many more things are currently happening in the market today.
The crypto king’s value has tumbled significantly as a result of these happenings. These things are likely to impact the bitcoin value significantly in the future.
But Why Is Market Down Today?
What do you understand? It has been bumpy for several months. You do not need to consider it down by the time the value of BTC is above the $10000 mark.
Several factors are collectively working against the crypto market these days. There are several reasons for it. Take a look at the list of them below:
First of all, FTX’s widespread contagion has stressed the entire market severely. More than $1.45 billion of losses have been realized according to the Glassnode Data.
Investors are also worried about the FTX’s contagion reach. They are expecting it to touch every corner of the crypto market.
Regulation is another reason for it. Most cryptocurrency investors in the world see it as a big threat to their profit.
What is more important is the way scams and Ponzi schemes have resulted in liquidations. All of these Scams and Ponzi schemes have dashed investors’ confidence to the ground.
What Will Keep Cryptocurrency Market Bearish In 2023?
Investors are likely to see a bear for the most part of 2023. In other words, recovery is expected to begin before the end of 2023. Do you want to know the reasons? All reasons lie in the year 2022. Go through the list of things below and you will understand.
- Interest rates in the United States and other countries are constantly increasing. This increase in interest rates has increased the inflation rate significantly. As a result, the bitcoin value has tumbled by manifolds.
- Even CPI (Consumer Price Index) Report has confirmed a 0.6% increase in the inflation rate only during September 2022.
- What is more important is the decline in BTC’s price CPI report has confirmed in November 2010. All in all, inflation pressure in the United States crossed the milestone of 8.2% in September 2022.
- Furthermore, experts are also expecting bitcoin value to drop below $3500 in 2023. More than $1,29 billion are still missing on-chain. BTC needs to cover these losses before hitting the new ATL (All Time-Low) in 2023 or later.
All in all, the BTC drawdown could be more than 80% in the future.
Cryptocurrency investors are worried because of these things. They don’t want to lose their money like this. You will see the impact of these things even in 2023.
We would like to know your take on the cryptocurrency market Is the market going to recover anytime soon? Tell us your opinion below in the comment box.
Read More: 10 Future Technology Trends of 2023
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