Is it finally the beginning of the end for BTC? There is no other way to explain the recent move that has taken down BTC, as well as a host of other cryptocurrencies. What happened? Just what is this "BTC?" What is in a large amount of US dollars that suddenly leaves these markets? The value of BTC has been dropping and prices of other major cryptocurrencies following, making it difficult for the average investor to decide where to place his or her capital.
One possible explanation for what has taken place could have to do with Elon Musk's SpaceX Which was alleged to have sold off the Bitcoin it held on its balance sheet four days ago, followed by an unprecedentedliquidation of derivative contracts in several exchanges that shook the crypto market with a lot of investors losing money. Could things still turn up again? It appears there is not much hope left for BTC this year which has lost over 12.50% of its value since the beginning of this month.
This crypto market has become a slaughter ground, there is no safe place anywhere at the moment, and the market seems to be working in reverse. It appears that more and more capital is leaving the market due to fears of an imminent collapse, with BTC pulling every other currency with it. In fact, Coindesk reported $1B in liquidations in a Sharp Sell-Off for Bitcoin, Ether. The sell-off was mostly from traders who bet on prices to rise, and they were all wiped out during the rush to the exits, Coindesk report. If the flight for safety has already begun, we may have to endure a more tumbling situation as this happens and the markets attempt to adjust to the new situation.
Why is BTC driving the market?
I can't understand why anything that happens to BTC should trigger a response in the rest of the cryptos. BTC should not be the crypto market vehicle and its behavior does not benefit other cryptocurrencies in any way.
The price of BTC should reflect the value of the cryptocurrency in its own right and the free market should not be manipulated by BTC whales. The market moves should be based on what the buyers and sellers of a particular currency feel is an excellent time to buy or sell. Not because of a prominent player's whim.
I am very concerned about BTC's market behavior. The short-term attitude of BTC whales, which I assume to be organized, allows other cryptos to act irrationally without any reason. But BTC, the one to blame, is clearly in a free fall now, the market has reacted to these concerns by causing a severe decline to other currencies.
Will we ever have a bull run soon again? Will we ever achieve our dreams with cryptocurrency?
All our efforts and the fruits of our labor for years that we have saved in crypto seem to be going down the drain and the short-term risk appetite of ordinary investors is declining. Even those who have been buying and holding are getting out of the market for safety now, as they believe it is no longer a good time to go long on the market.
It's not true though. At least not yet. I am hopeful that BTC will stabilize, or even increase in value, but this is looking less and less likely by the day. If BTC does not pick itself up by the bootstraps and climb back to its former glory, we could very well see a massive decline in prices and a poor start to 2024 for many cryptocurrencies.
As it is now, there is no safe place to put money. Even stable coins are no longer stable as they have been affected by what's happening to BTC, and the US SEC's continues attacks and litigation are not helping matters. The fear of some stablecoins collapsing is also there to deal with as nobody knows what might happen to those stablecoins that are being heavily watched by the American government.
I am really concerned for HIVE and LEO, the currencies that I mostly accustom to, and I hope we will be able to cope with these new concerns soon and re-attract new investments into the ecosystem.
What do you think about the current market situation?
The Lead image is from Coinmarketcap.com
Posted Using LeoFinance Alpha
Posted Using LeoFinance Alpha