The value of the crypto market has continued to fall to $ 1.04 trillion, down more than 8% in the last 24 hours. Almost all major cryptocurrencies were in the red, with prices falling by more than 11 percent for many, hitting a 24-hour low.
The dominance of top currencies fell by nearly 0.5 percent to 47.20 percent of the total crypto market. Bitcoin prices have fallen 17.02 percent over the past week.
At the time of writing, Atrium is trading at approximately $ 1,350, a decrease of more than 14 months. Solana is down about 30 percent, hovering around $ 29.
According to experts, the decline in the price of digital currency indicates a reduction in risk among investors. They are very cautious about risky investments. This is one of the most volatile investments due to its unpredictability and volatility.
Meanwhile, the total value of the foreign exchange market increased by 31.35% to $ 94.56 billion in the last 24 hours, which indicates a significant sale of digital assets by investors. Difai’s crypto market share was $ 7.76 billion, accounting for 8.2% of the total crypto trading volume. The stable coin market was worth $ 82.21 billion, accounting for 86.94% of the total 24-hour turnover of the digital currency market.
Why the crypto market is falling
At the time of writing, Bitcoin is trading at $ 25,762.63, down from its highest price of nearly $ 68,000. Central bank interest rates have risen as a result of digital currency transactions and their value has declined. Consider this: Bitcoin returns have dropped 40 percent since the year, while Atrium has dropped 50 percent.
Expert opinion on the cause of the market decline is given here
The crypto market has been under pressure from the Federal Reserve and has raised interest rates to fight inflation over the past few months. “Bitcoin, Atrium and most currencies traded over the weekend after widespread sales following data showing US inflation hit a 40-year high,” said Adul Patel, founder and CEO of CryptoMorex Investment Platform. , They lost.
Amit Gupta, founder and CEO of Fintrekk Capital, believes that the decline in digital currency markets is a global phenomenon. “The decline of digital currencies is a global event. Rising central bank rates and rising dollar index have led to lower trading activity and lower prices. The volume has decreased and traders (speculators) are reserving losses.
“Quinbis, a digital currency exchange center in the United States, released its first-quarter financial results, showing a significant decline in digital currency retail transactions, although the number of corporate transactions remained relatively stable,” Gupta said.
Bitcoin may reach $ 100,000 in 2022
Bitcoin has had a tough start to the year, but experts still believe it will fetch $ 100,000 – and that’s more a question of when than when.
Investors are worried about rising inflation, geopolitical tensions and the prospect of tougher monetary policy by the Federal Reserve. The crypto market has been increasingly linked to the stock market in recent months, making it even more dependent on global economic conditions.
They warn that war, inflation and monetary fluctuations in the United States will cause more fluctuations in the coming weeks and months.
Bitcoin has reached over $ 45,000 in just a few short periods in the last six months, and has not exceeded $ 50,000 since December 25, 2021. The current price of Bitcoin is far from its highest price of more than $ 68,000 set in November. Even with the recent drop in prices, bitcoin is still much more valuable than it was a few years ago. This kind of increase and decrease is not new for Bitcoin.
Despite recent price fluctuations and falls, many experts still believe that bitcoin will soon reach $ 100,000, albeit with different estimates of when it will occur. According to a recent study by Deutsche Bank, almost a quarter of bitcoin investors expect the price of bitcoin to reach more than $ 110,000 in five years.
Is the crypto market falling?
According to experts, lower prices indicate a reduction in risk among investors. They seem to be very concerned about high-risk assets. This is one of the most volatile investments due to its uncertainties and changes.
Since Friday, the amount of liquidity has been high, perhaps due to the panic of investors. Bitcoin and Atrium have each fallen about 7 percent and are now valued at $ 25,000 and $ 1,300, respectively. The downtrend may continue in the coming days.
Although Bitcoin has a long history of poor performance, Altcoins face more challenges due to regulatory barriers. According to CoinDesk’s analysis, only a handful of Altcoins will survive such market fluctuations.
According to Shivam Takral, CEO of BuyUcoin, rising food, gas and energy prices are putting a lot of pressure on the bitcoin market.