It is common to see Bitcoin or any other crypto falling and rising. However, the recent few days have been wrong as we can see the prices of Bitcoin dropping down by 10 percent. The last three months have seen the fall and rise and now again the fall of the coin. The first week of 22 has been bad for the coin, but it will rise early. The rise and fall of Bitcoin have been witnessed since 2021. First, it was high with 64K USD during the early months of the year, and then it came down to 30K USD. Then, again in September and October, it started rising, and by the end of December, it was an all-time high coming close to 70K USD. In this way, we can see how the coin’s volatility has plagued the coin in a big way. Now, it would be interesting to see how the crash for Bitcoin or any other comes into the market. Along with that, you must know about how social media affect Bitcoin value.
Factors crashing the digital coin
One of the key reasons we see the coin behind the fall is driving digital coins in a big way. These are driven by concerns with some tight kind of US monetary policy. The digital coins came with the trading option at 41.7K USD in the US, and then it started getting the bargain. Below is the list of these factors:
The shutdown of the Internet in Kazakhstan: The other big reason Bitcoin prices are going down is the network or internet shutdown in the said nation. It is among the top nation to accept Bitcoin mining in a big way. The fastest-growing nation in terms of mining was affected by the sudden blackout. Perhaps this is the biggest reason it has hit the valuation of digital coins in a big way.
The aggressive policy action of FR
The digital currency has come under deep pressure once the US-based group – FR was seen talking about their policy matters. They came up with some aggressive policy action that further increased investors’ appetite and even added the risk the assets have put in the market. As per reports, the agency’s stringent policy has added a good amount of sentiments all around the market in a big way. It has further helped increase the rates in a big way, claims experts.
The multi-million USD BTC Scam in Pak
While investigating the scam in Bitcoin, the investigative agency in Pakistan could bust out a multi-million scam in the country. However, it brought out too many ripples in the market as the fraud was seen busting in online investment taking place with a web-based app. The app owner was arrested, and it did hamper the market, giving the crash effect in the Bitcoin and digital coin market.
Reasons why the digital currency market is crashing
There are three big reasons why the Bitcoin market is crashing and even the crypto market in a big way. Not only Bitcoin but also the ETH-based coin that seemed to have gained well in the market. Now, how about checking why the Bitcoin-based market went down, falling over the same.
- The fed: As per the FR taper talk, we have seen many more things happening with the burst of BTC and the digital crypto bubble. As per experts, it could create a good amount of risks Bitcoin could offer. They also claimed that the price could even go down up to 10K USD.
- The new variant: The new Omicron variant seemed to be adding bad to worse things in the market. The vaccines are still to be tested as a deterrent for running the show. It has further added the impact on the coin and its value.
- The holidays: The following reason Bitcoin is crashing down is the number of holidays added in the recent past. Many investors are now busy having a good time with family and friends. They are seen locking the gains and making money away from the table. But with holidays coming in the recent past, the market was seen going bad to worse for Bitcoin.
Wrapping up
Experts feel that this is just a passing phase, and it will soon move away from Bitcoin, as seen in the past. However, the above are critical reasons for enjoying things smoothly.
