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|Crypto Crash -- Here's Why The Market Is Dipping by julybaba(m): 8:39pm On Jun 18, 2022|
Here's Why The Market Is Dipping
The past few weeks have been something right?
The crypto market has seen several dips, and it's alright if you are feeling a little worried. I know how it feels.
I thought I’d check in to see how you’re doing and shed some light on the market.
Now, to the good stuff. This is going to be a long read, but it’ll be worth it.
What’s Been Going On?
In the past month, the entire crypto market has lost over $1 trillion in market cap. Bitcoin has also dropped to around $20,000 - the first time since December, 2020
You might be asking, “Why is this happening?”
Well, there are several reasons:
1. The Global Economy Isn’t Great
The stock market has struggled this year.
The shares of Apple, Meta (Facebook), and Amazon have fallen by 24%, 52%, and 39% respectively since the start of 2022. So, it’s not just happening in crypto.
Heard about the Federal Reserve? The “Fed” is basically the United States’ central bank. It first increased interest rates in March, and it did so again this week.
Let me explain this in simple English. During COVID, the Fed printed a lot of money ($16 trillion) and gave it out to keep the economy alive.
Now, all of that money is chasing the same goods in the market and because people aren’t making more new stuff (goods and services) quickly enough, supply hasn’t increased. So sellers raised prices, and everything is now more expensive. In Economics, we call this inflation.
How Does the Fed's Policies Affect You?
Obviously, the Fed doesn’t like this because the economy will be affected. So, they’re now trying to reduce prices. To do this, they’re taking the money back from people by raising interest rates. This way, people have less money to spend on items and supply can catch up with demand. Over time, prices are expected to balance up ⚖️.
How does it affect you? Ideally it shouldn’t. But, when it comes to money, the U.S’s headache eventually affects everyone.
As they say, when the when America sneezes, the world catches a cold. Right now, America has a huge fever.
3.The Terra Crash
Now, let’s talk about the things that started shaking the market. Last month, the Terra ecosystem suffered a terrible breakdown.
Terra’s LUNA token lost 99% of its value, and its supposed UST algorithm stablecoin lost its peg against the dollar. Meaning that 1 UST was no longer 1 USD.
4.Celsius Stops Withdrawals
Besides Terra, there’s also the Celcius issue. Celsius is one of the most popular lending tools in the crypto space. They announced on Sunday that they’d pause withdrawals and swaps on the platform.
When the Celsius announcement came out, investors were understandably concerned and since then, the market has taken another slide.
So, What Should You Do?
Right now, traditional investment assets like stocks have also been affected by the global economy, and crypto hasn’t been left out, but market downturns are often the times the perfect periods to invest.
This might just be the time you have been waiting for. Imagine you bought Bitcoin when it was around $2,000 in 2017. Well, this could be your opportunity.
Here's A Possible Tip To Beat Inflation
It's also fine to be careful right now and for that you may want to consider Tether (USDT), USDC or BUSD ⚖️ - especially, if you hold a weak currency like the Naira that's easily affected by inflation.
So, whether you’d like to buy the dip or hold dollars , crypto has something for you.
I know it’s been a wild ride recently, but I know there’s light at the end of the tunnel.
Source: Quidax Newletters
Admin pls move to Frontpage so investors can relax. Thanks
3 Likes 1 Share
|Re: Crypto Crash -- Here's Why The Market Is Dipping by Bishop7170: 9:09pm On Jun 18, 2022|
|Re: Crypto Crash -- Here's Why The Market Is Dipping by AJOBI77(m): 9:41pm On Jun 18, 2022|
Una do more that this during MMM time.
We knew what eventually happened.
Just be cautious at this moment
|Re: Crypto Crash -- Here's Why The Market Is Dipping by ObiomaTailor: 4:35am On Jun 19, 2022|
|Re: Crypto Crash -- Here's Why The Market Is Dipping by spyglaxx: 4:47am On Jun 19, 2022|
Very illuminating.I only get something like this from Reddit.
|Re: Crypto Crash -- Here's Why The Market Is Dipping by 10kgod(m): 9:07am On Jun 19, 2022|
|Re: Crypto Crash -- Here's Why The Market Is Dipping by 10kgod(m): 9:10am On Jun 19, 2022|
|Re: Crypto Crash -- Here's Why The Market Is Dipping by 10kgod(m): 9:11am On Jun 19, 2022|
Alameda and Celsius competition has also joined in dipping crypto. Not only LFG again. We will survive shaaaa
|Re: Crypto Crash -- Here's Why The Market Is Dipping by Hundjager: 4:56pm On Jun 19, 2022|
You mentioned salient points OP, despite the dip I still enjoy the best rates trading on https://yellowcard.io/
|Re: Crypto Crash -- Here's Why The Market Is Dipping by surequality: 6:48pm On Jun 19, 2022|
Eyes and mind opener.
|Re: Crypto Crash -- Here's Why The Market Is Dipping by Freelancerx: 8:08pm On Jun 19, 2022|
|Re: Crypto Crash -- Here's Why The Market Is Dipping by Realboygenius(m): 11:19pm On Jun 19, 2022|
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