What is the cause of the downtrend in cryptocurrency market?

[uptrendfinancialsignal]

The downward trend in the cryptocurrency market presently should raise causes for alarm and so many cryptoinvestors are very skeptical

The cause of the bearish trends in the cryptocurrency market is not accurately known to market analysts, however it is believed that there are number of factors contributing to the constant decline.

The recent bearish trends in the cryptocurrency market could be linked to an overall lack of confidence, negative sentiment, and fears about future regulations. In short, it’s a combination of factors that has resulted in a market slump.

The massive sell off from crypto investors and traders who are afraid to invest in the market is also a contributory factor. The bearish trend is temporary and there are several reasons why it will end soon.

The people who are converting their cryptocurrencies to fiat currencies makes the market value to drop tremendously. People are selling their cryptocurrencies at any price and people who are buying are paying less than the actual price.

It is however very important for us to know that the major factor that caused the decline in the price of cryptocurrency , is the global regulation that is been embarked upon by most of the countries in the world.

 

[Lens1000]

The major things that we are experiencing in the cryptocurrency space is caused by so many things but majorly the experts said that it was accounted for by the cryptocurrency regulatory scrutiny that is being carried out in most of the countries of the world. This actually makes the financial investors or the crypto investors to lose confidence in the genuineness of the cryptocurrency space because the cryptocurrency space is marked with decentralization features and if these regulations would make it centralised then it could be manipulated and controlled by the government and as a result of these, the cryptocurrency investors have started withdrawing their funds or liquidating their funds. Another cause is the fear of missing out and this has actually caused a lot of crypto holders to sell of their cryptocurrency assets.

Another major cause could be as a result of the fact that there are so many rookie crypto trader that do not know how the cryptocurrency works, all they heard was that there is a lot of profit in cryptocurrency and when there is a little bit downtrend in the market value of the cryptocurrency that they invested in, they will do sell-off and this are the things that are causing the downtrend in the cryptocurrency space.

 

[Flow-er]

The downtrend in the cryptocurrency market is the basically caused by the quick sell offs that are done by the rookie traders. If you look at the fall in the market of the cryptocurrency, it is actually made possible by the newcomers in the cryptocurrency world. They came into cryptocurrency because they knew that it is very profitable but they're never considering the risks that is involved in it before putting their money and once there is a problem or turbulence in the cryptocurrency market, it would trigger a quick sell-off and this are the things that are causing the drop in the price of cryptocurrencies that we are witnessing presently. it is however very important to note that the regulatory structure that is been put in place by most of the countries in the world is also a contributory factor .

The supply and demand dynamics is the one responsible of the determination of the price of a cryptocurrency but when people are not demanding for this cryptocurrency, it is every possible that the price will drop because people are losing interest due to new regulations that is are being put in place by most of the country .

 

[sincerem]

I wouldn't go to say, the regulation that is alarming is the major significant of crypto bearish run. So many factors can influence it, we aren't seeing the regulation stuffs hitting up like it did in the past. China did ban crypto and it suffered one of it's lowest bearish run, at this time it isn't moving as expected, it is facing bearish thou. The market is not moving away from $29,000 - $31, 000 mark for BTC. It's been there in the last 3 - 4 months, I don't know when we'll see crypto like BTC moving back to $70,000. I know so many factors in which the OP stated are clear indication, but we wouldn't say only one is the more powerful, leading to crypto bearish run. Plenty of the factors like, government regulation enforcement in some countries, more sell off than holdl, tension etc, are major factors limiting the uptrend of cryptocurrencies at the moment.

 

[Lens1000]

I wouldn't go to say, the regulation that is alarming is the major significant of crypto bearish run. So many factors can influence it, we aren't seeing the regulation stuffs hitting up like it did in the past. China did ban crypto and it suffered one of it's lowest bearish run, at this time it isn't moving as expected, it is facing bearish thou. The market is not moving away from $29,000 - $31, 000 mark for BTC. It's been there in the last 3 - 4 months, I don't know when we'll see crypto like BTC moving back to $70,000. I know so many factors in which the OP stated are clear indication, but we wouldn't say only one is the more powerful, leading to crypto bearish run. Plenty of the factors like, government regulation enforcement in some countries, more sell off than holdl, tension etc, are major factors limiting the uptrend of cryptocurrencies at the moment.

No one is satisfied with the downtrend in the cryptocurrency space presently because so many people have incurred losses. The crypto investors are the ones suffering the most from this cryptocurrency downfall and most especially in the cryptocurrency space. This set of people who hold cryptocurrency irrespective of the market fluctuations, but the present market sentiment is so bad that they have incurred lot of losses in the process. The best advice is not to panic sell at this period, one should try as much as possible to keep Holding this cryptocurrency because it will definitely surge in the future. The Bitcoin is a Pioneer cryptocurrency and it has the ability to surge and that is why it is very important for the Bitcoiners to keep Holding irrespective of the downtrend. It is equally important that we should take note of the fact that the cryptocurrency regulation that is going on globally is the major factor that is contributing to the downtrend that we experience presently. So many people would lose confidence in cryptocurrency because they will believe that this digital currency is now controlled by the government and it will go a long way to forfeiting the nature of the cryptocurrency as a whole.