By Mark Ackman
The crypto market has continued to plummet in recent months, especially following the serious crashes that have occurred. And as the market struggles to get back on its feet, many analysts are wondering why crypto prices continue to plummet.
As prices drop, many investors need to simply cut their losses and move on, hoping that they can find something better along the way. Major Cryptocurrencies are either stagnating or dropping, and there seems to be no limit to how much these cryptocurrencies, and by extension, the market could possibly fall.
Bitcoin is possibly the cryptocurrency that has been affected by the current state of the market the most, as it is even struggling to hold on to the miniscule gains that it is currently making. And as the market continues to struggle under the current changes, it is either stagnating or falling.
This fall in price is having a direct impact on various cryptocurrencies, as most of the market still depends on the biggest cryptocurrency. Therefore, in order to bring the market back on track, most investors are trying to find out why the prices for crypto continue to fall.
Scams and Hacks Continue to Hurt Investor Confidence
The increased market volatility of the crypto market has left various cryptocurrencies in a state where they keep struggling to return. As investors keep trying to trust many of the tokens that they see in the market, many of them turn out to be Ponzi schemes.
The two major events that especially hurt investor confidence this ear was the crash of Terra/Luna, which crippled the market by $60 billion. In fact, it was such a big hit to the entire market that many believe that it was responsible for the market losing 60% of its total market cap.
Federal Reserve Interest Rate Hikes
The next important thing to keep happening to the market is the fact that the Federal Reserve has continued to raise interest rates, which has caused ripples across various financial markets.
And despite wanting to be independent of the traditional finance system, the truth is that they can never really break past it. Unless the Federal Reserve loosens the grip that they have on the financial market through interest rate hikes, cryptocurrencies can never really claim that they are not part of the system.
Could the Bear Market End Soon?
While that is certainly something that all investors are hoping for, the truth of the matter is that it can be a little difficult to predict this. Many are optimistic about how things are shaping up in the market since some cryptocurrencies like XRP are still managing to make incredible progress.