Why have the crypto market prices fallen?

There are a couple of factors that have influenced why have the crypto market prices fallen, such as Bitcoin the last week. In my personal view, I don’t see them related to the technology or the companies themselves but more of multiple external factors and macroeconomy of different superpowers. It is not the first time this phenomenon has happened, last time it was from the ban in China or Elon Musk’s tweet accepting payment in Bitcoin for his Tesla electric cars.

The USA market, which suffered after the latest monthly jobs report sent some shady signals about the country’s economic status. The unemployment rate dropped to its lowest point since the pandemic started, to 4.2%. Some investors thought that interest rates will grow, affecting the returns of the higher-risk asset investments.

Another reason why have the crypto market prices fallen, is the announcement of the new variant of Covid-19, the Omnicron, affecting the masses and raising the anxiety level as it did when the pandemic first started.

We must also keep in mind, that being the end of the year, the biggest events worldwide are happening, Christmas and The New Year. People need liquidity to pay for all those gifts and parties out there so many of them sell off some assets for that. An interesting fact is that the whole technology industry felt this effect the most, maybe it’s because that a lot of people when the pandemic first started, moved their investments and hopes to what they were still connected to, technology and the digital world.

If you would like to learn more about crypto investments, feel free to surf around the blog. Some useful articles are Smart Ways To Analyze Crypto Investments Before Placing Them or 3 Types of Crypto Investments. Don’t forget to like and follow me on social media to stay updated.

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