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Why Bitcoin Dropped Below 30K USD?

Of late, we see many crypto lovers asking only one question: Why is the value of Bitcoin constantly going down. First, it went close to 30K USD, and now it has reached below 20K USD. The big reason for this problem is the volatility of this currency which is seen going down daily. However, it is not about crypto having the money going down in a big way. The global stocks seemed to have gone down in a big way, and it has resulted due to several reasons. The downturn is primarily due to the war in Ukraine, the inflationary fears, the high-interest rates, and several other expensive options for the business that seemed to be borrowing the money. It has even checked into the digital currency market aggressively. All these issues have pitted the problem of crypto in a big way, and we have several other matters coming and hitting the crypto world, including Bitcoin, to a great extent. There are lots of factors affecting the value of crypto, you can also read the news that bitcoin slips toward 38K after the rally fizzles.

BTC: From 70K USD to 30K USD

We see crypto having higher interest rates, making it more expensive for many more businesses to borrow money. It only has spilled the cash into the crypto market in a big way. It seemed to be more costly for the company to borrow money, which seemed to have shown in the market in a significant way. The sump you saw on Jun2 22 was initiated only by CN, a Crypto based company that seemed to have frozen the withdrawals and transfers and even brought extreme conditions. The more you have added the fuel to slump over the crypt with their value going down, the better the chance of falling 1 T USD from the very first time since we saw it in Jan last year. Bitcoin has gone down by 20K USD once it came into the media. 

Similar was the story of ETH, which remains the second-largest token once BTC went down by 16 percent to 1.1K USD, the lowest figure since we saw on Jan 21. We saw Bitcoin sliding down even when China announced a sudden crackdown on crypto trade and BTC mining within their nation. Also, we hear that Russia is expected to take the same way. In addition, there are some sudden and several kinds of sell-off of many more big crypto companies. It can only trigger some panic and allow the chance to sell away the consumer with great confidence. All such events gradually helped to make things worse for the currency in a big way. 

Why is BTC so volatile?

Let’s compare it with some traditional investment options, including company shares, where the performance of the business influences many price movements. We see Bitcoin as having no underlying asset in the market. It only means that the action in the price and its base is ultimately coming like speculation among the investors regarding the future roller coaster ride of the currency. It has only resulted in several violent swings in Bitcoin price, even during the overnight time. You can find several incidents taking place due to the fluctuation. The rise and fall of Bitcoin have given the market a mixed feeling. You can find both positive and negative storied bringing out this volatility issue, have a look: 

The News Impact 

Several news articles put its impact on Bitcoin, leading to the currency’s fall. As the news of the Chinese government posing a crypto ban came into the market, it hurt the prices of Bitcoin. The following story was the rumors that Russia would ban Crypto, which also affected things around BTC. The mid of May in 21 also got the news from Tesla that they will not accept Bitcoin as the payment option to get their vehicles. The following month witnessed President D Trump calling Bitcoin a scam. The month of August had the news of the FBI capturing criminals having massive money in the form of Bitcoin. Crypto heists seemed to have targeting crypto in a big way. Besides the negative stories, we had some positive stuff happening for Bitcoin that helped gain market value. It helps in prompting speculation that can help in accepting Bitcoin significantly. These include El Salvador declaring Bitcoin as a legal tender in the market and many more stories that gained good buzz around it.

Red Note: 30 September 2022

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