Why Crypto Market is going down?

Crypto market is going down day by day. Why it is happening and what is the main cause behind this? It is very important to know the genuine reason behind this issue so it can be resolved as soon as possible. Without getting into the shaky value of other assets, the fact that bitcoin isn’t backed by anything isn’t the root of the current bear market. Instead, the crypto market is experiencing serious maturation issues, as well as a public perception problem. However, you may expect a huge market change if bitcoin entrepreneurs, investors, and regulators solve the following criteria.

 

7 Reason of why crypto is down

  • None of these strategies are guaranteed to make you a fortune in today’s economic climate. Bitcoin mining has gotten increasingly difficult and competitive, which means that the needed hash rate isn’t always worth the power price. For investors to profit from cryptocurrency, it just requires another round of innovation.
  • Because of regulatory uncertainty, we haven’t witnessed another crypto market explosion. The SEC is gradually regulating cryptocurrency, but it has been a long process thus far. Institutions and individuals would be able to invest in cryptocurrencies without having to acquire coins or tokens if cryptocurrency ETFs were legalised. ETFs would allow for large-scale investment and increased stability by limiting risk in this way.
  • Despite the fact that institutional investment in bitcoin is increasing, the majority of cryptocurrency investors are millennials who see cryptocurrency as a short-term investment. People seldom incorporate cryptocurrencies in their retirement planning, unlike other asset types.
  • According to blockchain statistics, it might have been as a result of people selling their holdings, which is common when Bitcoin and other cryptocurrencies hit new highs.
  • By definition, cryptocurrency is decentralised, meaning it is not controlled by a centralised institution such as a bank or government. As a result, the price is determined by supply and demand, and supply varies greatly between exchanges. Investors on other exchanges will notice and buy the same crypto if someone buys a large amount of it on a smaller exchange, causing a market-wide price surge.
  • Because of hacks, exit scams, and Ponzi schemes, the crypto market has gotten a lot of bad press. Some people associate initial coin offerings (ICOs) with fraud, which is far from the case.
We are still not able to recognize the working process of cryptocurrency which can be the biggest cause of this situation. We have to figure out the regulatory system of crypto so we can avoid this type of situation in future.

Summary

The reason behind the loss of cryptocurrency can be many but the major reason is not able to identify the process. If we are completely aware with the sequence and terminology then it can provide the existence and identification to this market which can be very helpful for the growth. So, it is important to know the value of your assets. Cryptocurrency is going down since three days and we are focusing on this topic continuously so if there will be any update, we will let you know soon. 

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Crypto market is going down day by day. Why it is happening and what is the main cause behind this? It is very important to know the genuine reason behind this issue so it can be resolved as soon as possible. Without getting into the shaky value of other assets, the fact that bitcoin isn’t …