HomeCrypto/ForexTHE MOST DIFFICULT TASK FOR BULLS IS TO RAISE THE CRYPTO MARKET

THE MOST DIFFICULT TASK FOR BULLS IS TO RAISE THE CRYPTO MARKET

The crypto ecosystem has been hit hard in 2022, where digital currencies have hit such low levels that they have disappeared from the market, while other strong ones like Bitcoin struggle to hold on. For more information visit this link: https://tesler.software/.

In an environment where various situations have developed, such as the bankruptcy of several cryptographic companies and the collapse of digital currencies, such as the case of Terra, without leaving aside the fact that Coinbase, the largest cryptocurrency company, is still alert.

Bond yields influence the crypto market.

All eyes are on the decisions made by the Fed and Powell, which is why changes in interest rates have been the factor that has generated the most significant impact on the valuation of crypto assets.

It is because people having a lower income and such a controversial digital financial market tend to invest in much more stable assets since they are looking for a refuge from the crisis that has been created.

The recent falls of companies associated with technology in the stock market usually associated them with Bitcoin; this is because, when interest rates are generally much higher, companies are forced to make cuts at various levels.

It leads to a decrease in the value of the assets. Because they are technological elements, they are linked to Bitcoin. However, the decentralization of this cryptocurrency is unrelated to what happens in the global market.

In the opposite case, if interest rates are considered flexible where the GDP can produce results that contribute to the growth of the economy, it is where crypto active investors participate since the market reflects the ideal opportunity to buy assets that require greater risk but that generate much higher profits or returns.

The main goal of the bulls is to prepare

One of the primary keys to understanding this type of opportunity is financial education. The cryptocurrency market represents a challenge due to its newness and the various investment forms it offers.

Panic seizes investors, where all the news information generated around the economy and finances usually produces anxiety and speculation around cryptocurrencies; at this time, it is infallible to know how to operate in both scenarios, whether bullish or bass guitarist.

It is interesting to evaluate the primary financial products of the traditional financial market, including government bonds, stocks, indices, and what refers to commodities, before entering the crypto market since they represent a reference for what could happen.

What is the task of the bulls?

Possibly we are facing a new stage of Bitcoin, where although its value is quite diminished, it has managed to exceed the floor level that has cost it so much, perhaps not in a very high amount, but if greater than 24,000 dollars.

Bitcoin is in a phase that represents a waiting time for the bulls. The price evolution strongly depends on the increase in the demand for Bitcoin, which has meant a challenge over almost eight months.

The periods are evaluated by analysts and experts from the financial sector and cryptocurrencies where we could be reaching the end of the bearish period and could be considering a change in trend in which it is the bulls that have the task of driving the market.

It is too soon to define a way out of the crypto winter since the market has cooled down drastically; only it is already known from the history of Bitcoin that it can change its relatively low cost to a value that can surprise more than one.

The adoption of stablecoins represents another challenge for bulls; consequently, many investors tend to go the safe way, where having two anchored assets generates greater peace of mind, even though its valuation compared to Bitcoin is much lower.

This diversification of investments in cryptocurrencies may, at the beginning of this new phase, generate the diversion of interest of many investors to promote the first crypto active in the ranking.

Conclusion

Bitcoin has come to decrease its value by almost 70% compared to the last all-time high of 2021, still maintaining a significant weight at the stage that perhaps external factors have been more devastating.

Market analysts often infer that we are entering a trend change where it is most likely that the prices of many digital assets will begin to rise in such a way that a bull market will progressively be generated.

Komal Singla
Komal Singla
I am a blogger and freelance writer having four years’ work experience! My passion led my way and turned a lecturer into an ardent writer. I love exploring, reading write-ups, and surfing the web during my free time!

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