Crypto market is crashing again after the great recovery recorded in past week. Bitcoin was recorded 10% up and similar the entire market. This bulish movement was recorded for a week. But now we are seeing the same downfall in crypto market.
There may be several reasons behind this. But the exact can’t be predicted as the market is completely decentralized. But as per expert and analyst analysis we are pointing two reasons.
Crypto Market Crash Two Big Reasons
There are two big reasons behind crypto market crash.
- Crypto market is following Stock Market Pattern.
- People not investing after LUNA crash.
Following Stock Market Pattern
It is seen that the cryptocurrency market is following the same pattern as the stock market. If there is a boom in the Jogi stock market, then only after 1 day, the cryptocurrency market also starts increasing.
Last week, there was an increase of two to three percent in the stock market, according to which there was an increase in the crypto market as well. With only 2% increase in the stock market, there has been an increase of about 9 to 11 percent in the sector market.
The stock market rises at the beginning of the week and the stock market falls at the end of the week, just like it is happening in the cryptocurrency market now.
For some time, there is a huge decline in the stock market too, according to which the cryptocurrency market is also seeing a decline.
Fear of Terra Luna Crash
Cryptocurrency market crash is a big problem because its fluctuations are very quick and erratic. A 10 to 20 percent drop in the cryptocurrency market is a minor thing.
Just recently the market of a major cryptocurrency Terra has crashed. This cryptocurrency used to be in the list of 10 best and its price has fallen by almost 99%.
So, people are in little trouble with crypto dump. They are avoiding crypto investment. It is not as trust worthy as stock market. Companies can be researched, they have some business model, and some basic fundamentals.
But crypto is very different from it. After Terra crash, some trust have off from the investors mindset. Somewhere they are thinking that crypto can be fade away.
We have written a detailed article myths about cryptocurrency, that explain positive and negative points of cryptocurrency.
So, these were the reasons why cryptocurrency market is crashing again after surging.
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