Why Are Crypto Prices Falling – A Worthwhile Analysis From Kucoin

The Crypto market is unstable and highly unpredictable. In the recent crypto market fall, many coins have lost significant value, and there are many reasons behind that. Several risks are always associated with crypto trading and investment, but there are many ways to minimize those risks if you are using a suitable platform. KuCoin is the best platform that allows the user to have real-time market analysis to know about the market predictions. Also, it has trading bot features that allow the user to minimize the losses by selling the cryptos at the right time and providing its own currency KCS by which the user can easily trade coins. With these features, there are significant differences that you can make.

In this article, we will look into the causes behind the fall of cryptos and why it is the best time to invest in cryptocurrency. So, let’s begin!

Why Is Crypto Falling?

It is not rocket science to understand that the cryptos are connected, and no matter how much decentralized the cryptocurrency might be, it is still affected by real-world issues. The prices are heavily dependent upon the FIAT economy. There are many factors behind the fall of cryptos, and these are:

Fall Of Bitcoin

In recent times, the fall of BTC has been a major catastrophic event that has taken the crypto market by storm, and all the coins, including the Ustc and TRX, have come under a spell. Bitcoin is the oldest, most powerful, and most popular cryptocurrency, and, believe it or not, all the other currencies heavily depend upon bitcoin’s value. Investors are liquifying the bitcoin, creating a demand and supply gap and a broader asset risk among the traders.

Celsius Pausing Withdrawal

Celsius is a popular crypto lending firm that has paused bitcoin withdrawal amid the fall to minimize the further drop. This has backfired, creating fear among the investors, who started liquidating their assets from all the platforms. This uncontrollable chaos has caused several coins to crash.

Inflation

Inflation is at a historical high in the world, and many investors fear the government policies to counter the inflation. Cryptocurrencies are affected by the fiat currency, and the fall in stock prices has also caused the crypto market disturbance.

COVID 19

Very few sectors are unaffected by the devastating effects of covid 19, and the crypto market was also not safe from it. The uncertainty in the market and the low trading have caused multiple investors to withdraw their investment, creating a market gap that resulted in the fall of the crypto market.

Russia Ukraine Conflict

Russia Ukraine conflict is a major contributor to the world economy. It has caused the oil prices to go to all-time highs and drop in trading and stock exchange. The effects of the conflict were not only in Europe but the whole world. As a result of sanctions on Russia, many investors liquefy their assets amid the unpredictable market policies.