The constant need for users of bitcoin up and other cryptocurrencies is creating anxiety at its highest level, which makes the digital financial market heavier and does not allow the flow of capital that increases the price of digital assets. The optimism of many investors that the market will change its trend has not been enough for the relationship between supply and demand to stabilize and begin to produce the changes that could give a radical turn to cryptocurrencies.
Bitcoin has touched 18,900 dollars and could go back to a much lower level near USD 17,500, extreme scenarios that nobody wants since investments infer risks. However, it could be the most feasible since nobody imagined it could vanish by almost 60% after an all-time high.
Crypto market action
The constant movements in the financial market have convulsed the various instruments, whether shares or cryptocurrencies. The effect on the latter has been more drastic; consequently, it has not allowed their evolution. While some of the stocks and options of the traditional financial market have been recovering, digital assets are constantly looking down, breathless to recover, where the economic and financial measures of the world powers have made the crypto market fade.
There are well-defined differences when talking about cryptocurrencies and shares since they are two financial instruments that, although they generate significant profits and returns, also have different management.
The creation of false perceptions regarding cryptocurrencies contributes to the discredit of a system that could benefit the economy in various ways as long as the rules and functionalities of each party are respected. The many actions taken to control and manage risks and inflation in the United States and Europe do not contribute to improving the financial market.
A financial crisis could be predicted to generate a worldwide recession if the necessary measures are not carried out to control the disproportion in social benefits and the high-interest rates that only contribute to the collapse of the economies. We could be facing a financial debacle where the only solution lies with government entities, which should create a friendly financial and economic scenario for all market players.
Elimination of crypto trading fees
After constant falls, Exchanges are looking for ways to attract as many users as possible as if they were traditional commercial company that hopes to sell their products.
In this case, the protagonist was the Binance Exchange Platform, which after celebrating its fifth year in the crypto market, decided to promote financial operations with digital assets at no cost. It means that unlimited Bitcoin spot trading fees were eliminated as it did not set an expiration date for said promotion.
The exchange platform has tried to keep its commissions at a reasonably competitive level compared to other Exchanges; the strategy arises with the purpose that investors are motivated to carry out transactions and feel comfortable that no amount will be deducted for it. More information on the Bitcoin-Prime trading system
The FOMO doesn’t stop.
Statistical analyses of investor fear and greed indices are often driven by extreme fear at this point that all available funds invested in cryptocurrencies could be lost. The decisions made by the leading companies in the cryptographic market have increased this value significantly since we have observed how they declare bankruptcy and block funds from investments in cryptocurrencies, making the panorama more complex.
Although a considerable level of leverage could take Bitcoin to a new value of almost USD 25,000, it is vulnerable since any last-minute action could affect the price of the leading digital currency and the underlying ones again.
The risks that investments in cryptocurrencies represent are no secret to anyone. Still, even so, it has been a highly attractive financial market for many, accepting that volatility is the main factor that works against it.
Today some factors directly affect the traditional financial market, strengthening the digital one. Still, this has changed, and the effects are usually the same for both markets. The data that indicates Bitcoin could change its trend refers to the possible adjustments that government entities could make concerning recent economic measures.
Alexia is the author at Research Snipers covering all technology news including Google, Apple, Android, Xiaomi, Huawei, Samsung News, and More.