Bitcoin is currently trading at 21,974 dollars as of the 14th last time. In other words, it plummets by 25% over the past five days. So, what is actually happening to the world’s largest cryptocurrency? Now Bitcoin is at an 18-month low. The peak hit nearly $70,000 last November feels like a previous life. According to the expert, understanding Bitcoin plummets means seeing a wider global market situation. Apparently, it is not only the cryptocurrency world that is in a bad condition.
Prices are soaring due to the economic downturn. The burden of living costs is weighing heavily on us along with rising interest rates. The stock market is also unstable. The instability arrives in the U.S. S&P 500 showing a weak market (which is 20% low from its recent high). In this situation, investment conditions are not easy for even large-handed investors. So individual investors, not institutional investors or wealthy hedge fund owners, have no investment destination. It stopped completely.
Therefore, some people feel that cryptocurrency is too dangerous due to its unpredictability and volatility. This is because there is no regulation and protection from financial authorities regarding cryptocurrency. So, if you invest all of your savings in cryptocurrency, the value collapses, and you’ll have no access to a cryptocurrency wallet. In other words you’ll lose money. Last month, two types of coins (Terra-Luna crisis) collapsed. Of course, the awareness is much lower than that of Bitcoin, but as a result, the reliability of the market as a whole has been cracked. Then, more and more people have offered to sell Bitcoin.