There were several investors who managed to beat the high levels of inflation thanks to the generous returns that various cryptocurrencies provided in recent months.
But it’s important to remember that what seems perfect never is, that’s how the value of Bitcoin the most important cryptocurrency in the world fell sharply last week to reach a minimum value of USD 25,000.
The crypto market has been characterized as one of the markets with the highest levels of volatility worldwide, the value of the virtual assets that comprise it can rise and fall abruptly in a matter of seconds.
In any economic market there are always various factors exogenous to the value of supply and demand which can cause abrupt increases or instantaneous loss of value.
In this sense, we can understand that the cryptocurrency market works as another market where we will have bidders and applicants who will operate in said market under cryptocurrency purchase and sale operations in different exchanges.
There were various events that affected the price of cryptocurrencies and that generated a sharp drop or collapse in the value of several cryptocurrencies.
To begin with, we can understand that an internationally known external agent was the war caused between Russia and Ukraine, whose countries took various measures regarding cryptocurrencies.
On the one hand, the first was not allowing Russia to operate with Swift and the departure of several traditional companies from that country. This caused Russia to increase the use of cryptocurrencies greatly, strongly impacting the demand curve of said market.
On the other hand, we could see how Ukraine began to receive strong donations in crypto valued at millions of dollars, which also caused a strong impact on the demand and supply curves of the crypto market.
We can also add the sharp drop in the stable currency known as Terra, which is backed by an algorithm and not by a real asset, as in the case of USDT and the value of the dollar.
It is essential to understand how the crypto market operates, what supply and demand consist of.
The most important agents within the crypto market are the crypto exchanges, which are in charge of providing information on the rise and fall of cryptocurrencies.
This is how various crypto exchanges have begun to offer real-time information on the value of crypto prices.
Phemex, one of the largest crypto exchanges in the world, has a section on its website which gives users the possibility of being able to analyze the variations of the various cryptocurrencies in real time.
It also has a team of collaborators and experts in the crypto economy such as Manuel Londra, also known on networks as @Inversiónencripto, who stated, “even gold, which is usually considered the quintessential safe haven asset, is an asset that has its periods. of decline, so when we talk about cryptocurrencies, we cannot leave aside the possibility of a bearish period because in fact with a 100% guarantee I can assure you that it will arrive, nobody knows when, but they arrive, and of course the rise periods too they arrive”
Likewise, another of the largest exchanges in the world known as Binance offers users the possibility of operating in various markets in which it indicates and warns about their volatility levels.
It is essential to understand that the crypto market will have moments of fall, and rises, what seemed like the end of the crypto market at times is ending and cryptocurrencies have begun to correct, this is how little by little we can see how the value of Bitcoin has started to rise.
Although Bitcoin is not gold, we can be sure that it is the beginning of something different, something new and revolutionary.
Source: Ambito
