At the beginning of last month, bitcoin reached its all-time high price of $69,000 and, later on, experienced a downfall as well. After October, the prices of bitcoins were constantly rising. Later on, it kept increasing and therefore managed to get the highest price of all time.
However, things changed soon. Right after reaching the highest price of all time, it started to decline, and it created worry in the mind of investors. Some cryptocurrency players withdraw their money from the whole cryptocurrency space. They are selling other cryptocurrencies too.
The second most common cryptocurrency in the world also experiences a massive sell-off in its unit. Other markets face the same problem. Stock market prices also started to decline after the liquidation of the cryptocurrency market.
You might think that it is nothing else but the market’s volatility that makes bitcoin prices lower or higher, but that is not entirely true. You need to know that bitcoin prices keep fluctuating all the time, and there are some critical factors in play. If you look at the bigger picture, you will find that some factors play critical roles, and you should know about them.
Some of the big players in the cryptocurrency space affect the prices of multiple cryptocurrencies at a single point in time. Therefore, keeping an eye on them is very important if you want to strike the right opportunity to make a profit.
Some of the most important things are described here to understand how to get the best out of digital currencies. You will get to know about the right opportunities, and it will enable you to become rich as soon as possible.
The most prominent and ultimate reason cryptocurrency prices are falling is the Covid variant. A new variant of COVID-19 was discovered in South Africa, and it is spreading all across the globe.
In some countries, it has affected a large sum of the population, and therefore, the government is worried about it. Due to the enormous panic created about the new Covid variant, some countries also impose strict lockdowns.
Therefore, the market investors are concerned. They believe it will create a pandemic just like the COVID-19 situation so that the global economy will shut down. If this happens, it will be a terrible phase for cryptocurrency investors, and therefore, they should convert it into cash. It leads to the vast conversion of cryptocurrencies into cash so that market players can have the cash to invest further when the prices start to increase at Bitcoin Secure.
United States infrastructure Bill
After the appointment of Jerome Powell as the chairman of the Federal Reserve, several controversies occurred in the cryptocurrency world. The view of the new chairman of the Federal reserve is that cryptocurrencies are a threat to the global economy.
Also, the main reason behind the increasing inflation United States of America is the widespread trend of cryptocurrencies. Therefore, America is set to impose some sticks restrictions on the movement and holding of cryptocurrencies.
It is about to impose some limits and lead to the downfall of cryptocurrency trading in the United States of America. However, it cannot completely suppress the movement of bitcoin.
Bitcoin is the most popular cryptocurrency globally, and there are thousands of holders of this coin in the United States of America. Therefore, a complete ban on trading cryptocurrencies is impossible; however, the government aims to control its movement and restrict it with some rules and regulations.
Regulation of crypto
Not the only United States of America but some other countries globally are also looking at cryptocurrencies as a threat to the financial system. Therefore, they are looking forward to imposing some restrictions and regulations on the movement of digital coins like bitcoin. A critical reason it needs regulations is that they are from Privately owned cryptocurrency firms.
Therefore, government-based bonds and other yields are not being sold in the market. It is leading to the downfall of the government-driven financial system for payment. As the United States of America, India is also about to bring a new bill that will control the movement of different cryptocurrencies. However, it also implies the launch of its government-driven cryptocurrency to develop further.
- By Executium on Unsplash