Why is Coin Crypto Market Down Today?
Crypto markets allow people to make significant profits with just a small initial amount. It is possible due to the high volatility of crypto assets that change in value daily and can skyrocket sharply. However, as the experience shows, high incomes are not the only thing you may earn when working on crypto markets, for every time you open positions on a crypto exchange, you take a risk.
Along with huge profits, the coin crypto market bears enormous losses. If you look at live crypto charts, you can see how changeable prices are. At some moments, the price boosts up, and at some moments, it drops and reaches the bottom. In such periods, investors make high profits and bear huge losses. What drives those price movements? Let’s talk about it.
The Reason for Crypto Market Down
In 2022, the cryptocurrency market lived through collapse. In spring, all crypto rates dropped, causing massive investor outflow and panic in the market. Some factors caused that:
The news background was not favorable to the industry at that time
FED increased rates
Binance faced technical problems and did not allow BTC withdrawals
Crisis was looming
The full-scale war started.
In November 2022, the FTX exchange revealed its financial troubles, and investors started to leave it, withdrawing funds massively. That’s another reason for the market drop.
However, it is normal for the crypto market to live by cycles. The transition from the bear to bull trend is usually accompanied by some bright events or, better to say, emerging technologies. In 2017, the boom of ICO took the market to a new level and stimulated its growth. In 2020 – 2021 – DeFi and NFT became the accelerants of market growth. In 2022, the WEB3 project adoption was increasing; however, it has not become mainstream yet and does not have enough influence to spur the whole market up. Many experts believe it will happen in 2023, but time will show.
One thing is clear – buying assets at low crypto market price and holding it long-term is a good chance to capitalize in the future. You can purchase digital assets on the WhiteBIT exchange.