Why Is Crypto Crashing? 5 Reasons Bitcoin Might Go Below $10k

photo: www.investmentmonitor.ai

While fluctuations in the value of cryptocurrencies are not uncommon, there have been some notable shifts in the way that the price of Bitcoin has been affected by these changes.

The crypto market has been experiencing a decline in prices and has been heavily impacted by major events in the crypto world, such as the crashes of popular exchanges and coins. 2022 has already seen a "crypto winter," with major coins like Bitcoin going into the red, possibly due to macroeconomic factors.

Currently, Bitcoin is trading around $16,000, but experts are concerned that it may drop below $10,000 due to the recent FTX-Binance dispute. In light of this, many investors are turning to new, emerging tokens that are performing well in their presales as a way to beat the bearish market.

Some of the noteworthy coins in this year's presale launches include D2T, TARO, IMPT, and RIA. Each of these coins offers unique features and potential for growth, making them a good investment choice before 2023.

Before discussing the most promising crypto projects of this year, let's explore the reasons behind the current market crash and why Bitcoin is predicted to fall below $10,000 in the coming months.

What is causing the crypto market crash? Explanations for the decline in Bitcoin value

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While crypto market downturns are not uncommon in the world of digital assets, there have been shifts in the factors driving price fluctuations for Bitcoin. In the past, crypto-specific events largely determined the movement of prices, but now, macroeconomic factors have a similar impact on both the crypto market and global financial markets.

1. The decline of FTX 

Several factors are impacting the crypto market, but one recent event is the dispute between FTX and Binance. FTX, which was a major crypto exchange, has experienced a significant decline. The FTX crash has affected the entire market, including major currencies like BTC, which have dropped more than 70% after November 6th.

2. Rising interest rates 

Increasing interest rates have been a major factor in the crypto market crash this year and the recent decline in BTC prices. Since the pandemic, the United States and other parts of the world have seen record-high inflation, resulting in price increases.

Several central banks, including the US Federal Reserve, have raised interest rates to decrease inflation by limiting the amount of money in circulation. This is likely one of the reasons for the ongoing decrease in the price of Bitcoin, as high interest rates have been affecting cryptocurrency prices this year.

3. Terra luna crash

Another reason for the decrease in value of Bitcoin in the cryptocurrency market is the detachment of the TerraUSD stablecoin from the US dollar, resulting in the decrease in value of the Luna cryptocurrency. In mid-2022, the value of LUNA dropped by more than 95% in one day, causing many other cryptocurrencies to also decrease in value and experience a decline in their price charts.

4. The continuous drop in the BTC prices

The fall of LUNA has had a significant impact on the value of Bitcoin, contributing to its ongoing decrease in value. The price of Bitcoin, which reached its all-time high of $68,000 in November 2021, has dropped by more than 70% and is currently trading at around $16,000.

5. Speculation and manipulation

When the cryptocurrency market is declining, it is common for investors to sell their assets to prevent further losses. This is especially true when large investors, known as "whales," sell their holdings, which can manipulate the market and cause a significant drop in value. This can create FUD, or fear, uncertainty, and doubt, which can further contribute to the market decline.

Possible Options to Consider Before 2023

photo: Business Today

It is undeniable that the cryptocurrency market has been experiencing a steady decline recently. Despite this, some highly promising coins have emerged this year. These are some of the most promising cryptocurrency projects of this year that investors are keeping an eye on.

- Dash 2 Trade

Dash 2 Trade is a top option to consider if you are interested in exploring different opportunities in the current market. It is a cutting-edge cryptocurrency analytics platform that provides social trading features to assist investors in making informed decisions.

The Dash 2 Trade platform offers trading signals, alerts for new coin listing and presale launches, social trading options, and more that aid traders in making better trading decisions, particularly in the current volatile market. The D2T token is currently in its third stage of its presale and has raised over $6 million thus far.

- RobotEra

The next item on our list is RobotEra, a sandbox-style cryptocurrency game where users can take on the role of robots and build their own planets. Players can purchase land in the game and create a functioning virtual reality within the metaverse. They will also have the opportunity to earn money by selling ads on their virtual land and charging other players to enter.

- IMPT.io

IMPT.io is an important and revolutionary cryptocurrency project that combines blockchain technology with carbon offsetting. The project has raised over $13 million in its pre-sale and continues to attract investors from around the world to join the cause of making the planet a better place by reducing its carbon footprint.

- Calvaria

Calvaria is a new P2E card game that has been gaining interest among investors recently, due to its clever approach to promoting the mass adoption of cryptocurrency among casual players. The game is currently in its pre-sale phase, making now a good time for investment in this emerging token to get the most out of the investment.

In conclusion, the market is currently experiencing a downturn with major currencies such as Bitcoin also affected. However, this presents an opportunity for alternative investments such as D2T, TARO, IMPT, and RIA. Now is the time to invest in these tokens before their prices rise. By investing now, you can take advantage of discounted prices before it's too late.

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Source: https://www.outlookindia.com

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