Cryptoeconomy: Crypto crash
Bitcoin and Ether fell more than 10%, Cardano 18%, Binance and Solana more than 8%. What is happening with cryptocurrencies? Did the Taproot negatively influence Bitcoin and drag the rest?
The SEC’s rejection of the Bitcoin ETF? This is the rejection of the United States Securities and Exchange Commission (SEC), to the request of CBOE BZX Exchange to authorize a fund traded in bitcoins exchange, known as ETF (Exchange Traded Fund) to do a direct monitoring of the price movements of Bitcoin, for failing to prove to be “designed to prevent fraudulent and manipulative acts and practices and to protect investors and the public interest”, according to the argument of the regulator.
Nothing of this
This massive drop in crypto is mainly due to the laws of the market, that is, supply and demand.
As the supply increases, the price decreases, and, apparently, there was a significant liquidation of these assets by the so-called whales, large investors or groups have high purchasing power and also a large portfolio of cryptocurrencies to influence the market , that is to say to raise or lower the price according to their convenience, and in the middle are the small investors, victims of their “attack”.
As we explained in a previous note, these “cetaceans” begin to sell at a lower price than the market in such a way that small investors panic and sell, then, these whales, expect the currency to reach a “minimum” where they begin to buy by driving the price up and valuing their capital.
The good news? Maybe the time to buy is coming