Why Is Crypto Crashing? 5 Reasons Bitcoin Might Go Below $10k
- November 26, 2022
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The entire crypto market has been witnessing a continuous drop in the price chart and has been dramatically affected by significant crypto events including popular exchanges and coin crashes. 2022 has been facing the crypto winter already where major coins like BTC were already going into the red, which could also be a result of certain macroeconomic factors.
While BTC is currently trading around $16k at the time of writing, especially after the FTX-Binance dispute experts are showing concerns about the popular coin that it might go under the $10k price mark. In this scenario, many investors are shifting their focus on new emerging tokens that are doing impressively well in their presale to beat the ongoing bearish market.
Some of the coins that need mention in this year’s presale launches are D2T, TARO, IMPT, and RIA – each of them offering unique features and potential to shine in the future that make them the best investment choice before 2023.
Before we look into the most potential crypto projects of this year, let’s find out why the crypto market is crashing at this moment and why BTC is most likely to crash below the $10k mark in the coming months.
Why crypto is crashing? Reasons behind the BTC drop
Although crypto crashes are not something new in the domain of digital assets, there have been certain changes when it comes to Bitcoin’s price fluctuations. What used to be crypto-specific events behind the price movements are now changed to macro factors that have a similar influence on the global financial markets.
1. The downfall of FTX
While there are a number of factors that are influencing the crypto prices but the recent one is certainly the FTX-Binance dispute. FTX, which happened to be one of the major crypto exchanges has faced an almost collapse. The FTX crash has affected the entire market along with the major currencies like BTC, which have fallen more than 70% after November 6.
2. Increasing interest rates
The rising interest rates have been the biggest culprit behind this year’s crypto crash as well as why BTC is going in red lately. Since the pandemic, the United States and other parts of the world have been witnessing record-high inflation that resulted in price hikes.
For this reason, a number of central banks along with the US Federal Reserve have increased the interest rates in order to bring down inflation by reducing the money circulating. One of the reasons behind the continuous drop in BTC prices is surely the high-interest rates that have been dictating the crypto price performances this year.
3. Terra Luna crash
Another reason behind BTC’s plunge in the crypto market is the de-pegging of the TerraUSD stablecoin from the US dollar which has ultimately led to the devaluing of the Luna crypto. In mid-2022 LUNA fell over 95% in a day which caused many cryptocurrencies to suffer and face a continuous decline in the price chart.
4. The continuous drop in the BTC prices
The LUNA collapse has also affected the BTC prices quite heavily which contributed to the constant decline in the BTC prices. From its all-time of $68k in November 2021 to its current trading price of around $16k, BTC prices have plunged more than 70%.
5. Speculation and manipulation
It is quite common for investors to sell their assets whenever the crypto market is dropping to avoid further losses. This very scenario gets intensified when the whales sell their holdings that cause crypto manipulation and make the market plunge by selling off a significant portion of the assets. The crypto market then triggers FUD or fear, uncertainty, and doubt that further influence the drop in the market.
Potential alternatives to look out for before 2023
While there is no denying that the crypto market is going through a continuous drop lately. However, this hasn’t stopped some highly potential coins to emerge this year.
Here are some of the most potential crypto projects of this year that investors are keeping an eye on.
Dash 2 Trade
Dash 2 Trade is one of the best alternatives to look out for if you are willing to take part fi different options at present. Dash 2 Trade is the latest crypto analytics platform that offers social trading facilities to help investors to make informed decisions.
The Dash 2 Trade platform offers trading signals, alerts for new coin listing and presale launches, social trading options, and more that help a trader make better trading decisions, especially in the current turbulent market. The D2T token is currently in the third stage of its presale and has raised more than $6 million so far.
The next on our list is RobotEra, the Sandbox-like crypto where users can be represented as robots and build their own planets.
The game allows users to purchase lands and create a functioning virtual reality within the metaverse. They will also have the opportunity to earn through many activities like selling ads on their virtual land and charging other players to get entry.
IMPT is another revolutionary crypto project that has merged blockchain technology with carbon offsetting.
The blockchain project has raised more than $13 million in its presale and is still attracting investors around the world to join the cause of making the planet a better place by reducing its carbon footprint.
Last but not least, Calvaria is the new P2E card game that many investors are taking interest in lately because of their smart way of promoting mass adoption of crypto among casual players.
RIA is currently in its presale phase like the rest of the coins mentioned in the list, which means it is the right time to invest in this emerging token to get the best out of the investment.
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The market is certainly going down with major currencies like BTC suffering as well. If you are willing to invest in alternative investments like D2T, TARO, IMPT, and RIA then it is the right time to do so before the price hikes. Invest now to get these tokens at discounted prices before it’s late.