The crypto market has shown many ups and downs in recent times but now it has reached a low point due to many reasons. The market is never stable even if you talk about shares, stocks, or any other investments. There are a lot of investment options for people but still, people are getting attracted to cryptocurrencies due to their major advantages that they provide over normal investments. Most of the people who are investing in cryptos are heavily buying only one currency which is bitcoin. The bitcoin market has the most number of people as compared to any other cryptocurrency and one of the major reasons for its popularity is Free Bitcoin Generator tools which helps in mining bitcoins rather than buying them. But still, as compared to some time back the value of bitcoin has dropped and other cryptos have also shown similar traits. Here are some of the major reasons for the drop in the crypto market.
Market Is Always Uncertain
As you all must know that investments are always subjected to market risks and you need to ensure yourself that if you are investing in any sort of investment, you may have to face downfall as well sometimes. If you are holding your investment for a very long time despite being in loss, there are chances that in the coming time, the investment may get doubled. But, this is not guaranteed that it will get doubled after six months or a year, sometimes due to several market conditions, the investments become sore and you get nothing out of your investment. So, before you start investing in cryptos, shares, bonds or mutual funds make sure that you read all the documents thoroughly and only invest if you are a risk-taker.
New Government Policies
Some nations consider cryptos as an illegal medium of exchange and they prohibit the usage of cryptocurrencies for anything. But many countries accept cryptos as a legal money tender and this is why in many countries certain government policies have put this under taxable income and you have to pay the tax on your earrings from cryptos. The inflation rate also impacts the Crypto market and makes it difficult for people to invest in the Crypto market. There are many countries that have dedicated policies regarding the purchase of cryptocurrencies and this is also a great factor behind the downfall of the cryptocurrency market.
Impact Of Elon Musk’s Statements
Sometime back Elon Musk said that he will accept Bitcoins and other cryptocurrencies as a medium of exchange for Tesla. He even bought many cryptocurrencies like Bitcoin as a purpose of investment for himself and made money out of it. but now he told the world that cryptocurrencies can be risky and he is not going to accept cryptocurrencies as a medium of exchange. The recent statement about cryptocurrencies from Elon Musk made a severe impact on the Crypto market. Many big cryptocurrencies are like Bitcoin ethereum dogecoin and several other cryptocurrencies witness a major downfall in their value.
Some Internal Frauds
There is no doubt that cryptocurrency is a very risky currency and investing your money in this kind of currency or investment can cause internal frauds as well. There is a Dark Side of cryptocurrency in which many hackers from all over the world try to hack into your account and take away all your money. These products can be a major cause behind the downfall of the crypto market.