Why Does The Cryptocurrency Market Crash Every Month?

[Good-Guy]

Cryptocurrencies have been considered as one of the major investment asset. What makes cryptocurrency unique is the fact that it is a digital asset that allows any one to trade from anywhere in the world. However, I have been noticing various kinds of really, really big problems with cryptocurrencies. One of the biggest issues with investing in cryptocurrencies is the fact that the cryptocurrency market crashes every month and this leads to a huge loss. I mean just look at what happened to cryptocurrency last month on 4th December, 2021! The cryptocurrency market crashed due to the fear of Omicron variant and a lack of interest of investors due to holidays. Right now the cryptocurrency market has crashed once again this month due to a major problem with Bitcoin mining issue and a raise in interest rate by the U.S. department of federal reserves. I have noticed that the value of the coin fluctuate every time due to some sort of issue and this has led me to think again about investing in cryptocurrencies. I am thinking about withdrawing all of my investments from cryptocurrency market and deal in fiat currencies and stable coins as of now. So, why does cryptocurrency market crash every month?

 

[sincerem]

Not even every month, it can crash even weekly, the prices doesn't move consistently for a period of one month. When it moves up within some days or weeks, you'll simply see the price going down slowly. The presence of volatility wouldn't allow the coins to remain static at a given price tag. Either they move uptrend or they simply move downtrend. We've been seeing it occur regularly like that, and we aren't surprise too, seeing each month experiencing bearish run or bullish run. 2021 October saw more of the bullish than the bearish, November was mixed, their was bearish and at same point, their was bullish. Month of December didn't produce anything bull, it was simply bearish, but it didn't go too low, but there wasn't any positive improvement in the process of the coins in December 2021. December 2020 saw rapid increment in the prices of the coin, but the recently passed December didn't produce that, maybe the omicron variant caused it. It brought tension to investors, since such kind of life threatening tension is there, their is no way, humans will invest freely. I believe that soon, the bull will come and the coins will skyrocket, those that invested earlier will reap reward too.

 

[Kingsley]

Yes that's true it crash from time to time. It's obvious the market is been controlled by the forces of demand and supply. Hence the price will crash when there is a strong disequilibrium. Although some people might be lucky and even end up making money when their is crash in price.

The market is highly volatile. It is always advisable to have a sound understanding of the system before investing your hard earn money into the system. As we know the market is for sellers and buyers and both parties will always play to the direction that best suit their interest and their are other unforeseen occurrences that makes investors make irrational decisions that affect the market.

 

[Deleted member 28127]

The solution is that to trade crypto to USDT until further use. Also for some wallets like payer you can trade to RUB or Uphold a receiving crypto address for USD account like Bitcoin.

 

[Sotherefore]

Cryptocurrency do not crash every month from my experience and if you are talking about the reason why cryptocurrency are crashing most of the time , there are a lot of complicated reasons for this which so many people do not understand. Normally you would agree with me that cryptocurrency generally deals demands and supply. And if you want to check the reason why cryptocurrency are crashing this is one of the reasons because when the demand for cryptocurrency are high most especially that of bitcoins we should expect the price of the overalls cryptocurrency to increase since bitcoins slightly control many others cryptocurrency.

Currently , the price of BTC and every other cryptocurrency are down . But here I will not believe that this is as a result of demands and supply , there are other complicated processed that governs the crypto space which so many people will not understand except the top expert that deals mostly with cryptocurrencies.