Why did bitcoin fall
Bitcoin, the big bull of cryptocurrencies saw a great dip loosing more than 50% of its all time high value below $30,000 for the first time since July 2021. Other cryptocurrencies like Etherium , BNB etc have seen similar falls too. Why did bitcoin fall? the same question that kept coming.
The current dip of Bitcoin and other cryptocurrencies is being caused by a combination of short-term and long-term inputs, including larger financial markets and the crashing of a major stablecoin. Here are some of the main factors leading to the current slump. Bitcoin’s dip comes on the heels of the Dow and Nasdaq’s worst single-day declines since 2020, as well as the S&P 500 hitting its nadir in the past year. The market has been unsettled by Russia’s invasion of Ukraine, which has exacerbated inflation, supply chain issues and oil prices. Slowed growth in China amidst COVID-19 outbreaks there are also contributing to financial anxieties. Some crypto evangelists predict that Bitcoin’s price will decouple from the stock market down the road—but for now, the two are very much intertwined.
Is UST the cause of Bitcoin fall?
Some experts believe that TerraUSD (UST), one of the largest stablecoins, played a role in Bitcoin’s crash earlier this month. UST is intended to be pegged to the U.S. dollar but it sank as low as 12 cents and collapsed in a pseudo-bank run as investors panicked and sold off their tokens. Last week, Terra relaunched a new version of its failed luna cryptocurrency, but not UST.
Bitcoin has not been above $50,000 since December. 25, 2021. Despite the ups/ downs, Bitcoin stayed above its January low point below $34,000, which was the lowest it had been in the previous six months. Bitcoin’s price has seen 40% drop in value since its all-time high above $68,000 on November 10, set back by surging inflation, lagging recovery in the job market, and the Fed’s ongoing signals that it would begin winding down pandemic measures to support the economy.
Are Crypto mining equipment suppliers affected?.
The big question is , will you be brave to buy any equipment whose end product value is dropping?. Had it been the price drop also affected the equipment value , it would have been a different case, all cryptocurrency mining equipment manufacturers have stick to their price , no discount or price drop leaving every investor scared to buy because at this stage no one knows the future though anything can happen but everyone is very cautious.
In 2017 when the giant crypto machine manufacturer’s Bitmain antminer S9 was most wanted and saw a drastic fall in sales and price because of the bitcoin dip, we are now in 2022 and experiencing the same situation as bitmain also has latest machines like the Antminer L7 which was widely purchased not forgetting the small bobcat miner which has led many people purchasing because of its low noise and able to be installed in offices and home .All cryptocurrency machines manufactures and suppliers will tell you their sales have dropped below 50%.
Will bitcoin rise?
Most experts are speculating and pointing fingers back to what happened in 2017 and that it could be a similar situation and they believed buying the dip will worth it. This is still risky but buying the dip is a good idea but it is very important to note that crypto is very volatile so make sure you invest what you can afford to loose DO NOT , take loans to invest in cryptocurrency. For me buying the dip is preferable that buying the rise. Please think well before you invest