Why Bitcoin is falling down? With the state the world is in right now, an economic crisis is inbound. The stock market and the value of cryptocurrency are both extremely volatile. If the stock market crashes, because of economic crises, the value of cryptocurrencies might take a massive dip. However, there is no definite guarantee. This is because cryptocurrency is a non-fiat currency that has not ever seen such a bear market before. Many experts believe that a crash in the US Stock Market will cause massive dips in the value of cryptocurrencies.
Bear economies can often provide good investment opportunities as the prices drop, they typically tend to lead to a recession. If a recession were to hit, it would lead to a lot of pay cuts and some severe downsizing in companies. This causes a severe loss of jobs. The market does not look too kindly at employing new individuals in these situations. Many people may find that their only means of staying afloat and paying for things is to seel any assets they may have. Non-fiat objects like gold and bitcoin are some of the assets that individuals would first try to sell. However, as everyone is trying to sell this, naturally, the value of the asset is bound to fall. 7 Best Mosquito Killer Lamps in India
Bitcoin Crash 2020
What this ultimately means is that, if there is a crash in the stock market and a potential recession, the cryptocurrency market, that is already very volatile, is bound to see a decline in its worth. With the ongoing fight against the CoVid-19 pandemic, it looks like we are well on our way to a recession. That being said, many investors would soon prefer to be in a position where they keep more liquid assets. This would naturally mean the selling of commodities like gold and cryptocurrency, further fueling the drop in their worth. However, this does not necessarily mean that cryptocurrency will stay down forever.
To reiterate, bull economies are great for investment. This is because bull economies drive prices down, making it cheaper to invest in stocks and non-fiat currencies. If you can ride out the decline, you do stand a chance to reap in a lot of rewards. Cryptocurrency will fall if the US Stock Market crashes, but this may not be enough to bring it to its knees.
Ultimately, you need to understand how volatile the cryptocurrency market is. Prices can see sudden surges or drops in a matter of hours. The value of the cryptocurrency you hold may fall in this very tender stage we are at right now, but this may not be a permanent situation. You can sell right now and keep whatever you get, but if in a few months the worth of cryptocurrency skyrockets, you would end up cursing yourself. You can buy more if the costs fall in hopes that the prices will rise in time, but if it stays low, that will be a problem. Ultimately, there are many possible actions you can take, which will help you get on top no matter the situation.