The crypto price crash is in full swing. For almost two weeks now, the matters have been in the world. Traders and investors fear the future of bitcoin. Could The Biggest Cryptocurrency Fall Below $10,000 Now? In this article, we answer the question of why prices are so high and why Bitcoin in particular may continue to fall.
Sales and anxiety – This is why crypto prices are falling
Crypto exchange FTX filed for bankruptcy on November 11. The platform is officially insolvent and no withdrawals can be made to its customers. In the last few days, a document was even published that shows that the company could have a million debtors in total. The group has approximately 3 billion USD for the 50 largest lenders alone.
Traders are still concerned that such a situation could repeat itself. Within minutes of filing for bankruptcy, investors were flocking to withdraw their currencies and funds from the stock exchanges. The fear of the next platform becoming insolvent is too great.
But the fear around the stock exchanges is not only great. Most investors will probably still remember the big price crash in the spring of this year. Within a very short period of time, all crypto courses fell south. Traders now know how quickly such a fall can happen. So they acted quickly, which led to many sales. The fastest ones were still able to sell their cryptos at a relatively high value, but most of the others had to live with high losses. This created more anxiety and resentment among traders who might want to stop selling, a chain reaction.
This is how the next price crash came about, causing one cryptocurrency to drop feathers after another. Bitcoin lost more than 30% in value in three days. At times, the price dropped to the USD 15,200 mark. Today, BTC price stands at $16,000 after bouncing back 4.35% in the last 24 hours.
The Ethereum course took such a dramatic development. ETH price fell 32% in two days. On November 7, the figure was $1,600. On November 10, it fell to the USD 1,100 mark. 1 is 125 Ethereum today. It has also increased in the last 24 hours. Today there was an increase of 6.04%.
Investors are now worried, is the crisis just a temporary situation? Will it last longer as cryptocurrencies keep going? These are the questions crypto investors and traders are asking right now.
Towards $10,000? This is why Bitcoin may continue to fall
If you compare the current situation with the price crash from the spring, you can assume that the current crisis is still in its infancy. Accordingly, Bitcoin may continue to fall. Bitcoin started going down about eight months ago. At that time, the war between Ukraine and Russia and the emerging economic crisis were to blame. At the beginning of March, the price of BTC was around USD 37,000.
At the time, the fall did not happen overnight, as it does now, but it developed slowly. The price continued to fall steadily throughout May and June. At the end of June, the price was only $19,200. If Bitcoin is actually just at the beginning of the descent and continues to fall in the next two or three months, the USD 13,000 to 10,000 mark is possible.
Another reason for the price to keep falling is inflation. It is still at an all-time high. Although consumer prices are no longer rising as significantly as they were a month or two ago, a sustained decline in inflation rates does not appear to be in sight for a long time yet.
Since the cost of living has increased so much, more and more traders are turning away from the crypto platform. Small investors just have less money available to invest in cryptos. Inflation in the United States rose 0.7% in October. In Germany, the value is now 10.4%.
In the past, bitcoin has reflected developments in US interest rates. This has been increased regularly in recent months. This factor will also play a major role in the development of prices in the coming months.
In summary, there are five reasons why Bitcoin could reach the USD 10,000 mark.
- The rising interest rate
- Persistent high inflation
- The trading volume is decreasing on the stock exchanges
- Low demand for risky investments
- Uncertainties of Crypto traders
Bloomberg’s chief analyst Mike McGlone also accepts that the crisis related to the crypto market will continue. He expects bitcoin to fall to somewhere between $12,000 and $10,000. In an interview, he also talks that the crypto crisis could also drag down the stock and commodity markets.
“Bitcoin is one of the most important indicators of uptrends and general downtrends. And now the price has dropped, so I expect most of the other dominoes to drop as well.”
The expert assumes that a further increase in interest rates could worsen the current situation and therefore the market will be on hold for a long time. There are currently many factors that suggest that not only Bitcoin, but the entire crypto market will definitely be facing difficult times in the coming months. At the moment the price is still far from the USD 10,000 mark, but if it continues to fall as it has in the last 14 days, it could be there soon.
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Cryptocurrencies are a highly volatile, unregulated investment product. Your capital is at risk.
