Cryptocurrencies are proof that the financial market is not something stable. The Crypto Genius system so far this year have had a very tough stage.
They achieved almost $70,000 per unit in 2021. This year, it has reached nearly $26,000, quite difficult results for the crypto market and its users and investors.
A market that continues to be volatile
Cryptocurrencies, from the moment of their origin, have given much to talk about, to the point that it was considered that external factors would not affect the value of digital assets, something that, unfortunately, over time, no matter how much they have struggled to remain immune to they have not succeeded.
The market capitalization of BITCOIN has decreased, but, in comparison to this currency, which is the group’s leader, others have been seen that have practically reduced their value per unit by 100%.
Data that for many are alarming and is that the volatility of cryptocurrencies is an inherent characteristic of these financial markets, unquestionably this year has been one of the most radical after the economic measures that have been taken concerning the crises.
In the case of STABLECOINS, they have also been affected. However, they have fought hard to maintain their valuation, which has decreased even more when they are anchored to the value of fiat currencies, such as the dollar.
The future scenario does not seem to be clear for cryptocurrencies; many suggest that a possible crypto winter will occur, but the truth is that the floor values that cryptocurrencies have touched have been too marked.
It is the best time to acquire cryptocurrencies since everyone expects their value to rise to unimaginable amounts.
Let us remember that by the end of 2021, all the experts in the digital financial area predicted that in 2022 the value of Bitcoin could reach $100,000 per unit.
Fed restrictions and military conflict
Several months have passed since the beginning of the year, and cryptocurrencies continue to be affected by external decisions of the traditional market. Something that for many was unexpected but unfortunately has been severely affected.
A digital market with bullish aspirations was hit drastically. The most unfortunate thing is that everything has been after the restrictive measures of the Fed in response to the crisis generated in the United States.
The most drastic measure has been the increase in interest rates, which has prompted users of cryptocurrencies to find themselves having to sell their digital assets; this indicates that the supply of cryptocurrencies has been much higher in demand comparison.
Without a doubt, another aspect that has drastically marked cryptocurrencies has been the war situation in which Ukraine and Russia find themselves. However, both nations are using cryptocurrencies as financial means.
It should have increased the demand for digital currencies, but apparently, its effect was the other way around; this situation has not contributed to the fall in cryptocurrencies.
The withdrawal of savings in cryptocurrencies has represented a risk for many since they prefer to have their money at any time to make other types of investments that can generate returns more quickly.
The crises or corrective stages that cryptocurrencies go through usually last for short periods. Still, everything indicates that this problematic stage will be completely different in a short time.
Even if the war rages on and anti-inflation measures remain in place, cryptocurrencies have shown strength during tough economic times, so a new trajectory for digital currencies should soon be upon us.
Bitcoin’s reputation has made it one of the most robust and solid cryptocurrencies despite the volatility of these financial instruments.
It has been evident that the external factors that affect the economy and the traditional financial market are causing drastic effects in the digital market; everyone hopes that the situation will be transformed and it can once again recover its status.
The new Fed meeting may generate new effects on cryptocurrencies, the initial corrective phase is expected, and the performance of Bitcoin and the entire digital financial market may be significantly changed.
Many are the investors, who have left their capital in these assets, and according to their way of seeing the behavior of the market, whenever a downward trend occurs, the rebound arises, and that is where profits reach historical maximums.
The evolution of cryptocurrencies is not a matter of hours or days; it is having the perseverance to see it in its full development.