Since the trading value of bitcoin all over the world is approximately US$ 20,000, somewhere it declares that Bitcoin has lost over 71% of its value since its all-time high in November 2021. However, BTC resistance in the US is found to be the highest. As per the expert's statement, it is hard to believe that if the US could not complete BTC's US$20,000 resistance, its speed would slow down. Although the target piece sits close to US$22,000 unfortunately cryptocurrency. For more information, you can visit bitlq app
Although Bitcoin's significance value could drop off due to many other reasons also. Before this drop, bitcoin was considered as a specific store that could save the fluctuations in economic as well as financial sectors. But now the conditions have been reversed. As of now the impact of economic phenomena can be seen on the bitcoin and crypto market and reduces the risk of assets, stock market and fed monetary, etc. Moreover, experienced investors can deal with market conditions and their volatility as well.
The gloomy mood of the globe
During the covid period, a lot of companies specially from china, including Shanghai and mainland Chinese cities have to face negative impacts globally. One of the main reasons for the disturbance of the economic market was the Russia-Ukraine war which was also costing the world billions. This was the reason why the crypto market was going down due to the drop off of the bitcoin price value in the crypto market and the trend was continuous till the end of 2022 when bitcoin price value was the lowest ever.
Governments and their struck compliance with crypto
Before 2021, during the ongoing covid period, approximately 40 countries banned crypto use and even restricted banking access to their ecosystem to stop the crypto exchange. Probably it was the main reason for the dropdown in crypto prices and therefore they went to the lowest till 2022.
Negative or positive impact of Indian government for use of cryptocurrency
Cryptocurrency tax imposed by the government has is up to 30% tax in case the profit has been earned otherwise it will not be permitted to acquire any exemption due to losses incurred by crypto currency. Moreover, it was heard that there will be a 2% TDS which will come into force from the 1st of July, and tax on goods and services will be more than 18%. However, after imposing so many restrictions still, crypto was not allowed by the government to give a legal identity. Thus, the Indian crypto ecosystem was highly impacted due to the decision of the government over cryptocurrency.
El Salvador and its failing experiment
Although EI Salvador had given bitcoin a legal tender to get citizenship in the country, it failed to convince its citizens to use crypto. Thus, their crypto interest holds on to NIL interest. It was also a significant reason for all of the crypto value and it reaches the bottom till 2022.
Crypto investors taking on too much leverage
In January, the crypto data firm says CryptoQuant’s BTC holding ratio has gone highest. Like the traditional market, in the crypto market, investors were also using debt to finance the purchase of the future. It is also a reason for the fall of bitcoin prices till 2022.
Lack of publicity around NFTs and lack of liquidity in the crypto market
When illegal activities carry on such as fake collection, spam fraud transactions, wash trading, etc. Moreover, the major issue which has to be faced by the crypto market is when investors invest large amounts of their assets over the total liquidity of the crypto market. And if sodden crashes happened for crypto on weekends. A few investors will be ready to purchase the crypto when a lot of coins have been sold already on weekends.
Terraform selling bitcoins for millions
A Luna Foundation Guard, which promotes Terraform Labs which is an organization. This organization's selling pressure also is a key factor for dropping the crypto prices in the market. Thus, bitcoin prices fell. And why it reached the bottom before 2022 ends. Some of the organisations have founded firms with cryptocurrency such as UST, LUNA and selling of these cryptos has pulled the entire crypto market downwards. Hence the basic concept behind Bitcoin price fall and its expected reach to the bottom till 2022 end, is a matter of concern.
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