It's no news that the crypto market is very unstable. Just take a look at the price of Bitcoin now. Bitcoin wallet 44k dollars and Boom, it was sent back to 41k dollars. What's an unstable movement which can make investors panic. I will start by emphasizing what stable coins and altcoins are.
Altcoins are actually cryptocurrencies with high volatility in the market which varies from one moment to another which can be very risk as well. Among old coins an example would be trons, EOS terra, steem and the likes of them. Stable coins are tokens or coins that isn't affected by volatility in markets. An example of such is the US dollars we have today.
If you noticed, when bitcoin and other coins are affected by changing prices or swings, dollars has remain unchanged. It will do sometimes move up a bit what is stability is just there. Most of the cryptocurrency market is experiencing a sharp decline. What do you think of this Fall? **Most Traders start panic-selling so as not to incur losses in any form, not knowing when there will be an increase in these assets.
Sometimes this decline can last up to 2 weeks which even gives the investors more pressure to sell. The bearish market made in stability occur in altcoin cryptocurrencies which make them begin to go down. When such happens, many investors change their altcoins to stable coins and others or some even preferred to withdraw this asset to their traditional bank accounts.
Yet others even more freaky and invested in the strongest altcoin like bitcoin taken advantage of this opportunity to buy cheap coins and then make passive profit and future when the price goes up. It's even at this point in time where the market is redressing that investors Who fell to purchase bits of Bitcoin should do so. Cryptocurrency market is relatively susceptible to drastic changes and in most cases, these changes can be positive or negative.
When China made the announcement that it will no longer allow the use of Bitcoin assets and that it will also apply severe sanctions to anyone who goes beyond that law, bitcoin had a fall because most of the large investors were from China but it started recovering little by little. When the war between Ukraine and Russia was announced, there was a decline two but investment in other specific cryptocurrencies as also increased when the Tesla magnet andounced that he would inject money into dogecoin crypto assets.
This means that the world news can greatly influence the cryptocurrency market, the real cause of the market for is still unknown. They could be many causes that is the crypto market is 100% certain.
The training volume in the case of Bitcoin doesn't decrease because despite the low price or decrease in price which mascal many investors some investors take it as an opportunity to invest, to buy more coins at a lower rate so they could sell it at a high rate when price goes up. Bitcoin had been writing for many weeks sometimes investor prefer to wait for a drop to invest because they then hope to rise when large investors enter the market or when minority investors continue to place their assets in Bitcoin.
In conclusion, volatility in the crypto market has really influenced the prices of most crypto assets. When the mother is down the children are also down, that is to say when bitcoin is down most crypto assets or old coins are down. Volatility in the crypto market can actually stir up emotions, leading to panic selling which can be very dangerous and less profiting. Could there be more? In my next post, I'll talk about how instability can be reduced and the steem ecosystem.
_All screenshots are from my binance
Disclaimer :Any financial and crypto market information provided in this post was written for informational purposes only and does not constitute 100% investment advice. It's just basic knowledge every crypto trader or investor should have