- These Top Crypto OGs Love to Hang Out at Parties - September 16, 2022
- Crypto Twitter is Raging Bulls over Name-calling - September 15, 2022
- Stop Putting “Feminism” Labels on the Demand for Internet Privacy in Web3 verse - September 14, 2022
Bitcoin whales are now choosing more centralized options to gain a safe edge amid dwindling market conditions
Bitcoin is sliding into its lowest market value ever. Currently, at the time of writing this article, Bitcoin is standing at US$32,034.07, according to coinmarketcap. According to reports, last week, the BTC token created a devastating storm in the crypto investors community that made the crypto market plummet by almost 10%. Bitcoin being the world’s largest cryptocurrency by market cap has truly disappointed some of the most avid BTC advocates. most investors are now underwater as crypto prices continue to decline exponentially, even after massive adoption. Earlier, investing in crypto was not only risky but also profitable. Cryptocurrency has always been a good form of investment asset for those who wish to take risks. But currently, the declining value of the crypto market has harmed investors immensely, who are now sorting refuge in centralized assets or traditional domains of investment. Currently, Bitcoin is making headlines as it dropped below US$31,000, which is its lowest value since July 2021. Well, now if the ‘Death Cross’ warnings are true, then it is quite evident that more pain awaits the crypto market. Now, this declining status of the crypto markets is directly hitting the businesses of the crypto exchanges.
Data shows that crypto whales are actively selling their BTC tokens. According to reports by Glassnode, Bitcoin whales are busy distributing tokens, suggesting a low probability of reversing the recent market price. To add to this pain, crypto exchanges are equally suffering as Coinbase states that its experts are pretty sure its recent earnings report will record even more declining values as trading volumes and daily transactions have degraded exponentially. Not just Bitcoin whales, almost all crypto investors are looking forward to investing in traditional and centralized assets, losing hopes that the crypto market will ever recover.
The Declining Value of the Crypto Market
Bitcoin investors and whales have been planning for quite a long time to sell off their BTC tokens and other crypto tokens. It is not only due to the declining value of Bitcoin, but also due to the fact that the crypto market is also losing its dominance in the economic and financial markets. The recent decline in the crypto market has demonstrated falling confidence among investors. The market has been suffering since the Covid lockdowns, in fact, Russia’s Ukraine invasion has also adversely impacted Bitcoin and all other major cryptocurrencies, as the EU initially planned on banning Bitcoin. The market faced another blow when China shut down Bitcoin mining in its Sichuan province and further instructed its banks to stop supporting crypto transactions, with the rising crypto restrictions in the country. Apart from these, there are various reasons that govern the degenerating status of the crypto market, but investor sentiments also play a major part in this too. Growing fears over increased regulations and banning crypto transactions by several global governments have made investors choose various other centralized investment assets.
With recent darkness accompanied by the market slump, the new and aspiring investors bring a little ray of light and hope. New and aspiring investors who are ready to take big risks are now slowly, but steadily planning on entering the market. The shrinking prices of all cryptocurrencies have brought with them lucrative opportunities for new investors to buy the dips. And if this continues, experts believe that we will surely witness a sustained upward trend. The conditions might seem quite bleak right now, but there is also a little ray of hope if all investors think that the dip is worth the buy. But nevertheless, investors have to be extremely careful during these times. The volatility might generate massive profits within minutes, and it might also make your regret all your investment decisions!