Why is the crypto market crashing?

in bitcoin •  3 years ago 

Here are the reasons why the crypto market is crashing recently:

  1. End of year selling by hedge fund managers to rebalance their cyrpto portfolios and book their crypto profits.
    https://www.investopedia.com/ask/answers/122214/what-does-end-quarter-mean-portfolio-management.asp

  2. Russian whale investors pulling out their crypto investments ahead of the Russian central bank decision to ban crypto.
    https://www.reuters.com/markets/currencies/russian-cenbank-seek-ban-investment-cryptocurrencies-sources-say-2021-12-16/

  3. Retail crypto investors spending their spare funds on Christmas shopping instead of crypto investments.
    https://www.cnbc.com/2021/11/29/holiday-shopping-2021-more-than-half-of-americans-are-going-into-debt.html

  4. The FED claiming to start tapering causing the stock market to fall. There is a strong correlation between the S&P price action and the crypto market. The stock market S&P currently has been falling matching the fall in the crypto market . See below:

image.png

  1. Binance exchange to close its crypto services in Singapore. This causes some their clients to cash out instead of transferring the funds to other exchanges
    http://timesofindia.indiatimes.com/articleshow/88325259.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

  2. Bearish technical indicators are keeping crypto traders on the side lines until those indicators turn bullish again,
    https://www.coindesk.com/markets/2021/12/07/bitcoin-technical-indicator-suggests-low-probability-of-santa-rally/

When will this bearish market going to end? Probably in the new year. Inflation is here so where are you going to put your money?

Answer: Crypto of course!

If you have not sold your crypto already just wait it out since the bottom is probably near. If you already sold out just wait a bit longer for the dust to settle.

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