Good evening everybody, hope ye all is doing good, today I will be participating in this community for week 4, and I will discuss the instability in the price of the crypto market over the last days. Below is my entry.

Ques. 1

Most of the cryptocurrency market is currently experiencing a sharp decline, especially in recent days. What do you think of this drop? State its causes and how long do you think it will continue in this downtrend?

What do you think of this drop?

Everyone knows that the price of cryptocurrency fluctuates, which means that the price changes (ups and downs) within minutes and one cannot predict what the price of cryptocurrency will be.

Recently, the cryptocurrency market is experiencing a sudden drop in prices for all cryptocurrencies making all crypto or HODLer owners suffer from mental anguish. An online tweet from twitter has made us aware that at least 8 people have committed suicide during the recent downturn in the crypto market.

Causes of this drop

The main reason for the crypto drop these days is the fact that there are more people selling their currency, than people buying, and all this is due to users trying to evade the SEC investigation, when they let them go. their goods are only liquid money.

How long will this continue in this downtrend

I can't figure out when this decline will last, but I have high hopes that the price will rise soon. All crypto traders should not panic, just try and keep your positions small, so that you can tolerate flexibility.

Ques. 2

Why doesn't this drop in the price of a few coins decrease their trading volume (eg: Bitcoin) ? How will they deal with this market instability?

The trading volume indicates the amount of cash flows in or out of a cryptocurrency asset. If there is a decrease then most investors withdraw their money from the asset and if it stays the same or rises, it means that more investors are holding or investing more.

This means that even if the price of a commodity falls, there are long-term investors who are just happy to hold on to the downturn and therefore are not willing to sell.

It can also mean that some short-term investors see it as an opportunity to buy property at a lower price in order to sell it over time that could benefit them.

In technical terms, this can be seen as a bullish signal where the price is down but the volume is not there (or a regression signal).

It is a common theme to know that the crypto market is unstable because it is so volatile. This should be the first information every crypto market participant should be aware of. This can be very helpful as they approach the crypto markets.

Therefore in order to deal with market fluctuations they should approach the market in a technical or basic way, depending on their preferences. The technical approach involves using technical charts and tools to perform analysis and decisions that can be useful to them. While the basic method involves finding a variety of crypto assets to help you make decisions about investing over time or HODLing as much as possible.

Ques. 3

What is the relationship between the current instability and the downfall of the Terra ecosystem and its Luna currency? Do you think its price will bounce back? If so, tell us how and when?

Source

Last week, Terra LUNA was the talk point as it dropped sharply to almost 99% of its value which caused confusion among traders as the currency dropped from $ 120 to $ 0.6 within 2 days despite being calculated. among the most respected cryptocurrency10 and the most valuable. This decrease in price also decreases significantly in your volume as volume drops from $ 40B to about $ 500M.

Within the Terra Blockchain, LUNA has its own native token and is the second best metaverse technology behind MANA which we know is the metaverse taking technology right now.

So I think the current volatility and collapse of Terra LUNA is due to the massive collapse of the crypto currency of mother Bitcoin and the main reason for this decline is simply because of how the crypto market history has recently changed from risk-to-risk. -The closure also caused the sudden liquidity of the LUNA token to plummet as large investors took out their coins to invest in potentially dangerous currency.

However, the main reason why LUNA dropped so much was because the LUNA token had serious problems with the stable UST Terra dollar-pegged as it dropped to about $ 0.29 which caused the LUNA price to drop almost. 99.9% of its value

Do you think its price will bounce back?

No! I don't think the price will go back. The coin is dead in my opinion. Even Coinmarket has informed us on their website that the Terra blockchain has been suspended due to the release of UST and the LUNA token is undergoing major changes. Screenshot below:

Ques. 4

Our Steem ecosystem, like most currencies, has been affected by this market downturn, has this caused you as a user some stress? Or are you still confident in this project? Give your opinion, specifying the arguments that support your review.

It did not surprise me to see the STEEM prices also go down. This is also a result of the decline in the BTC maternal currency. This STEEM discount price affected me a lot as I watched how my account balance dropped to more than $ 1k. I was unsettled because since joining the stadium, I had never lost so much in a crisis.

The worst part was when I realized I would never be able to win SBD again. I could only get STEEM, SP, and TRX. This too bothered me a lot and I wondered? Is this over ??? Thanks to Fredquantum, a professor of crypto who published an article about why we no longer have SBD. The biggest problem was due to the debt ratio between STEEM and SBD. The debt ratio between STEEM and SBD was over 10% which resulted in us receiving only prizes on STEEM, SP, and TRX.

I am very happy that Steemit Blockchain has a solid foundation, which is why the price has managed to bounce back and is currently trading at 0.25 at the time of writing this post. This also allowed us to start earning again with SBD. But I see the debt ratio between STEEM and SBD is between 9% and 10%. That is why we are currently receiving awards in both STEEM, SBD, SP and TRX.

Last words

The crypto market instability should not be a surprising problem for us traders because the value of cryptocurrency cannot increase or decrease permanently. It will continue to fluctuate because of market volatility. So far, despite the massive dumping of cryptocurrencies, I still firmly believe that the crypto market will recover and regress.

I also invite @mesola @humairaarshad @mac-5 to participate in the contest.