The cryptocurrency market has lost more than 10% of its value in just 24 hours, and this is the explanation.
If you have an investment in cryptocurrencies, it is likely that you have spent the last 24 hours very complicated and with many doubts about what to do with all those investments that have lost more than 20% of their value in just one week, and especially more than one 10% of its value in just 24 hours.
And when we look at the cryptocurrency market we must look at Bitcoin, which at the time of writing this news according to data from CoinMarketCap, has lost its value by 8.71% in just 24 hours and 17.50% in seven days, which is causing weak hands to sell at a loss and strong hands to continue investing.
Although Bitcoin had stabilized its value between 40,000 and 44,000 dollars in recent weeks, it was from Thursday morning when it began to lose its value considerably, and there are a number of reasons that explain it.
In general, this dip in the value of cryptocurrencies coincides with the collapse of stock markets around the world . However, the Wall Street NASDAQ Composite Index, which includes the most important technology companies, fell 1.30% yesterday, and already had a huge previous drop.
Also a few days ago, the Central Bank of Russia announced that it was going to prohibit both the sale and the mining of cryptocurrencies throughout the country, and although Russia does not represent a high percentage in the mining of the same, it has also been able to affect this drop of Bitcoin and the rest.
But perhaps one of the reasons for this considerable decline in value is the possibility that the United States Federal Reserve (Fed) will tighten monetary policy to fight inflation, causing many investors to sell the shares of technology companies.
However, Stack Funds, a provider and distributor of managed funds and crypto investment products, told the specialized media outlet CoinDesk that “cryptocurrency markets have been sitting at a critical support level for some time. Macroeconomic market weakness is causing a sell-off in risky assets.”
But this already goes back a long way, because recently the former stock trader Nassim Nicholas Taleb, who already warned about the risks of the US mortgage market before the global financial crisis of 2008, compared Bitcoin to a contagious disease and noted that it does not serve as a safe haven of value.
And to all this, we must add that there has been a theft of cryptocurrencies of more than 30 million euros in Crypto.com that increases the lack of confidence in this type of investment.
