Zaheer Hussain

PaidForArticles Bitcoin: Why is the biggest cryptocurrency crashing? 53 Hits - Siva Mohan k - Jun 15, 2022, 12:10 AM The story of the world-famous cryptocurrency is incredibly fast and its fans will soon be queuing up to tell you that you made a mistake. But write about it right now, because the last 24 hours have been a disaster for the grand Dame of cryptocurrency - even Bitcoin rates. I'll focus on Bitcoin here - but if you're a crypto fan, you'll know that the whole market is worried, to put it mildly. What's going on? As I write this, Bitcoin trades at $ 21, 974 (£ 18,000). Decreased by 25% in the last five days only, to the lowest rate in 18 months. The peak of $ 70,000, in November, is felt in the past. The charts are all red and go in one direction - down. Why? Experts say that this is due to global warming. Not only in the crypto world do things look bad. The recession is rising, inflation is rising, interest rates are rising, and living costs are rising. Stock markets are also volatile, as the US S&P 500 is now in the bear market (down 20% from its recent high). As a result, even large investors are not comfortable with their money. And many ordinary investors - not hedge-fund owners or wealthy companies but people like you and me - have little to invest in anything, a full stop. To many, investing in something volatile and unpredictable like cryptocurrency sounds like a huge risk in these times. It is not controlled and protected by the financial authorities, so if you spend your savings on it and lose value, or lose access to your crypto wallet, your money is gone. Why now? Last month we saw two very low yet significant coins fall - and this lowers the confidence of the whole market. As a result, people are increasingly choosing to sell. When people sell more, Bitcoin decreases, because it works that way - its value is attached to its desire. This is the result of a collision with many retailers because they see the price drop ... and the cycle continues. Unlike other traditional assets, Bitcoin has no real value to back up - no bricks and mortar, revenue stream or core business, FT market planner Katie Martin says. "The price is unique and anything people are willing to buy from you," he tells me. "That's when people start to panic because, if enough people are looking out, there is no bottom line. Nothing can stop them from trading for $ 10,000 tomorrow, if enough people stop or are forced to sell." Why now? So that is the already difficult background of Bitcoin - and then, 24 hours ago saw this development: Binance, the world's largest crypto currency exchange (basically a crypto currency trading platform), has suspended all Bitcoin withdrawals for a few hours. He said this was due to "stagnant trade" - though, not everyone believed it Cryptor Celsius did the same - but cited "worse market conditions" than technical issues. And now, the Coinbase exchange recently announced that it was laying down 18% of its employees, alleging, in part, a "crypto winter". Bad investors are starting to sell more Bitcoin The first two caused panic. Imagine if you could suddenly withdraw cash from your bank account, or hear other people not. You will be at the nearest 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 hold on to it and some will have to start buying it again. This has happened before. Crypto fans will tell you now is a good time to buy, because it is cheaper - and you have to stay strong and watch the corner turn. In this case it is always used. One of them posted me on Twitter earlier: "The pump will always happen." The lucrative stories of those "get rich quick", as well as high-profile celebrity recommendations, are attracting new money. Elon Musk has written on Twitter several times about his love for 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 Altaff Kassam told BBC Radio 5 Live's Wake Up To Money program. And speaking boldly, Hollywood A-lister Matt Damon launched a crypto ad with the slogan "Good Luck for the Brave," in October 2021. 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 will probably not now feel like "good things" - it was almost three times more expensive than today.