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Every time the crypto market sees a drop in its volume and trading price, the assumptions regarding the crypto assets start soaring in the space
As the flagship cryptocurrency bitcoin price is dropping, it has started being seen as a new phase of turbulence for the crypto market to go through. Since the Federal Reserve’s meeting is scheduled on Wednesday, several cryptocurrencies started getting weak on Friday amidst the uncertainty and the information that could emerge.
This week the price of Bitcoin has seen a fall of more than 2%, going below $39,000, and it’s the same time during which the cryptocurrency has seen both $43,000 mark fall to $38,000 during the same week. Other popular crypto-assets like Shiba Inu and Dogecoins have also witnessed a drop of 10.27% and 5.87%, respectively, where the latter has seen a couple of days’ price surging after the news of Elon Musk buying Twitter broke out.
Ethereum seemed to strengthen with a slight and subtle increase of 0.22% in its unit value despite the market situation. Practically all the top 100 cryptocurrencies tokens have experienced sales by the end of last week, which is striking. This managed to generate a sense of uncertainty among the investors that translates into a loss in the crypto assets’ value out of fear.
The vital factor that simulated the volatility in cryptocurrencies is those statements that were issued against them. For instance, at the annual Berkshire Hathaway meeting, top investors like Warren Buffett and Charlie Munger openly criticized bitcoin and crypto-assets. At the meeting, one of the greatest investors said that investing in virtual assets is not a suitable option as he doesn’t think it produces or does anything.
Buffett said that he could buy 1% of farmland or living apartment buildings available in the US for $25 billion but would not buy if someone would get him the entire available bitcoin, even for $25. He said he would not take it; what would he do with it.
On the other hand, inflation levels point to the rising interest rates by Federal Reserves well more than current levels before this year’s end. Hence, this creates a difficult scenario or environment for cryptocurrencies like speculative investments, so no one dares to make predictions or forecast what would happen to them.
By far, numerous experts have pointed out that since the blockchain network provides a platform for applications and services to be built upon, the Ether token of Ethereum could hold out against the blows or financial turbulence more than any other cryptocurrency.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
