Bitcoin Fall: Why are cryptocurrency prices falling in the New Year?

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On January 1, 2021, the price of Bitcoin had fallen to $ 43,030 from a high of greater than $ 47,700. Other popular cryptocurrencies such as Ethereum, Solana, Cardano, Binance Coin, and others seem to have been free fall.               

On January 1, 2021, the price of Bitcoin had fallen to $ 43,030 from a high of more than $ 47,700. According to CoinMarketCap data, prices of other popular crypto brands such as Ethereum, Solana, Cardano, Binance Coin, and others seem to have been in a fruit drop.

Since the beginning of the New Year, the fall in cryptocurrency prices has weakened the memory of crypto traders. But the decline in prices in the crypto market is nothing new, so it is not a surprise for the active crypto enthusiast.

On the word of Darshan Bathija, CEO & CO-founder Vauld, Bitcoin has tied up mostly, Since the beginning of December 2021. However, the current price could be due to uncertainty facing all markets.

Bathija said, “The current price of BTC can be attributed to the uncertainty facing all markets, with the announcement of Omicron’s transformation.” He added, “we can expect multiple things at the same time – many investors will take this as an opportunity to buy leather, but many will also try to cut their losses, which will disappoint consumers. “While investors in cryptocurrencies are often unsure of their assets, corporate investors are increasing their share of cryptocurrencies.” For example, On December 30, 2021, MicroStrategy took stock and bought 1900 BTC for approximately $ 91 million.

Bathija said at the end of 2021 that “the chain data also showed that whales continued their trading as Bitcoin collapsed. From the beginning of December to the end of December, there was a significant increase in the number of holding addresses between 1,000 and 10,000 BTC.

Alexander Cavendish, CEO of hedge fund Hedonova attributed the current fall in crypto prices to currency exchange from sales to corporate investors. There is a concept called ‘switching’ to investments. For all asset groups, funds change hands between stores and investment institutions and usually happen in cycles or after a cow or a precious bear, Cavendish told FE Online. Cavendish expects bitcoin prices will see up for a while now before reaching $ 120,000.

He added, “The variation from $ 4K to $ 60k was behind the maintenance of adoption, this move will be behind the institutional adoption”. By 2021, almost all of the top crypto brands have returned huge profits to retailers.

While it may not be expected to happen again in 2022, business experts are hoping for a steady move forward in the crypto market this year. (Cryptocurrencies are unregulated assets in India. Investing with them can put your money at risk. Please consult your financial advisor before making any investment choice)

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