Malaya Ruiz
The cryptocurrency market has come under selling pressure, indicating an increase in negative sentiment among investors. Reports from multiple sources show that the market lost more than $170 billion in total market value.
The recent drop has caused heartburn among market players, with the question on top of everyone’s mind being how much longer it will last.
One potential factor contributing to the situation is the pressure on Bitcoin, the world’s largest cryptocurrency, as Mt. Gox started repayments to its users. The collapsed Bitcoin exchange owes around $9 billion to its customers.
Bitcoin’s price fell by 8% on Friday to $53,523, reaching its lowest value since late February, according to Reuters. At the time of writing, Bitcoin is trading at 56,470.33, down by more than 3% on Friday.
In addition, this market slump, as explained by Wise Advice, a crypto analyst, can be attributed to various factors, such as significant withdrawals, liquidations, mining operations, government interventions, and market sentiment indicators.
On top of that, the uncertainty among investors regarding U.S. inflation and interest rates is putting pressure on crypto prices possibly influenced by U.S. Federal Reserve Chair Jerome Powell’s recent comments indicating potential changes to rate cuts in 2024. Powell elaborated on the fact that the Fed requires more compelling evidence to support a decision to lower interest rates.
Meanwhile, market fears have been exacerbated by the actions of the German government, which has been moving large amounts of BTC, causing some investors to sell off their holdings in anticipation of negative market effects.
Crypto is a highly volatile asset, and investors are advised to do your own research when investing in cryptocurrency. The sector also lacks regulations that are on par with the equity markets to keep investor funds protected and to deter rogue projects and founders.
So always invest after you do your due diligence, and make sure you engage only with official accounts of any project to avoid falling into traps set by scammers.
Disclaimer: Malaya has positions in SHIB, ETH, USDT, MATIC, etc. This article is provided for informational purposes only and should not be construed as financial advice.
The Shib Magazine and The Shib Daily are the official publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
(This article was edited to remove references to Bitcoin ETF outflows as having affected the cryptocurrency’s price.)
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Malaya has positions in SHIB, ETH, USDT, MATIC, etc. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
