Steemit Crypto Academy Contest / S1W4 – Reviewing the Instability of the Crypto Market by @kawsar

Today in this post I will share with you Steemit Crypto Academy Contest Season 1 Week 4 Post. The topic of this week's Steemit Crypto Academy contest is Reviewing the Instability of the Crypto Market. Currently the crypto market is in a lot of downtrend. Today I will discuss this. In the current situation, the market is in a very bad situation and there are many reasons for the market to come in this situation.

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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?

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Currently the cryptocurrency market is going through a lot of declines. In recent days, some of the issues that have been presented to us, which I think have caused this fall. And if we take a look, we can see that this collapse didn't just happen over cryptocurrency. Rather its impact has now fallen on the stock market and we are seeing a decline in the stock market.

As we have already seen in the news, I can see a lot of decline in the stock markets of our country at the moment. Which have already gone viral in our country with the issue of stock market collapse. However, I think cryptocurrency will take some time to return to normal. If this continues for some time, the market will hopefully be able to move in the right direction. And here are some of the ones I found to be interesting:

Ukraine-Russian Isssue:

Russia has invaded Ukraine, and I think the effects of the war situation created by Russia's invasion of Ukraine have been felt all over the world. Especially if I want to talk about our country, the price of oil has increased by 15% to 30% since the beginning of the war in our country. Because we know that Russia is one of the world's leading oil exporters. And its impact has not only fallen on any market but on the whole world. For example, it has affected the stock market and the cryptocurrency market. As the price of things has gone up, so has the cryptocurrency. Which we have seen in the present situation.

And there is a huge demand for oil in our country, which is why its price has gone up so much. Exports to various countries have also risen sharply, as Russia has closed its routes to exports. That is why their prices have gone up due to rising export costs. And we've seen a lot of declines in the stock market and cryptocurrency markets because of the rising prices of all these things, and I think the Russia-Ukraine war is one of the reasons for this decline. The Russia-Ukraine war has had a devastating effect on the world economy.

China's order is about cryptocurrency:

Also I think there is one more thing that has a lot more impact on cryptocurrency. A few days ago, the Chinese government officially declared that cryptocurrency transactions were illegal in their country and that cryptocurrency transactions could no longer be legalized in their country. In that case, we know that China is currently one of the most economically powerful countries in the world. And if a country like China makes such a decision about cryptocurrency, then it could be a very significant reason for the collapse of cryptocurrency.

But China has a lot more demand in the world market. For example, if I talk about our country, then in our country there is a lot of demand for electric products or many other kitchen items, which come from China. And the reason for the high demand for Chinese products is that China can make any product at a very low price. When a decision like this comes from a country like China about cryptocurrency, it affects the whole world, and I think it has an effect on cryptocurrency.

And because of all this news, the cryptocurrency market has fallen so much. And we naturally know that the cryptocurrency market is a very volatile market, they fluctuate a lot. But if there is good news, then the cryptocurrency market will be fine again or if the world economic situation is right, but I think cryptocurrency will be normal. And all of this has not only affected the cryptocurrency, but also the economic markets around the world.

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Do you think it will continue in this downtrend?

It is unknown at this time what he will do after leaving the post. Because the cryptocurrency market is volatile, the uptrend will start again from the market downtrend, although its timing cannot be said for sure. So I can say that someday maybe the cryptocurrency market will come up again or the uptrend market will start. But that time cannot be said with certainty.

But for the uptrend market to start, the situation in the world needs to be normal. If good news comes, but this market will start to go up again. At present we see that due to the Russia-Ukraine war but the market has been affected a lot. In that case, if the current war between Russia and Ukraine turns into a third war, then we have a very bad reputation in the world market and also in the cryptocurrency.

But if things return to normal quickly, the world market economy will return to normal and hopefully the cryptocurrency market will return to normal and the uptrend market will begin. In that case it will take some time. Also, if there is any good news about the cryptocurrency market, the cryptocurrency market will go up and the uptrend market will start. But it is unknown at this time what he will do after leaving the post

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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?

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Trading is a very important issue in the cryptocurrency market. This volume indicates how much of that cryptocurrency asset was traded at a given time. And we often see in the market that the price of a cryptocurrency is much lower. But even after the collapse of that cryptocurrency market, the trading volume of that cryptocurrency in the market is much higher, that is, it trades much more cryptocurrency. But many times we see it in the market.

As we can see in the case of Bitcoin. We must know that Bitcoin is the first cryptocurrency in the world. The rest are called atl coins, and in this downmarket, the dominance of Bitcoin inside the cryptocurrency is always much higher. For example, the current Bitcoin market is 44.8%. And we know that every trader is interested in Bitcoin, especially when the market is in a lot of downtrend or the market is at a very low level. Then everyone took the opportunity to invest in Bitcoin. Because it is the main cryptocurrency which means a lot of people trade here and the demand increases a lot.

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As we can see, Bitcoin now accounts for 44.6% of the total market. Because now the price is much lower, so everyone is investing in Bitcoin cryptocurrency by selling other coins. But when this price goes up a lot, people will start investing in other coins instead of bitcoin. Because then the price of Bitcoin will go up a lot.

In this way, the price of Bitcoin as well as other alt coins increases. When the price of Bitcoin goes up a lot, people refrain from investing in Bitcoin. Because the price of Bitcoin has already gone up a lot. So everyone started investing in other alt coins. There are others that are still available to buy at lower prices, but prices are likely to rise further in the future. They start investing and their prices go up.

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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?

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There has been a lot of talk about cryptocurrencies as they have fallen. But I think there is a lot more to talk about. Especially in our country there is a Facebook group about cryptocurrency. Where much has been said about LUNA. I saw so many posts about LUNA that I was really surprised. Because many people have invested a lot more dollars in LUNA. Which amount I may not be able to say.

But they never thought that LUNA would collapse so much. All cryptocurrency markets are going through a bit of a downturn due to the market downturn. But it's really incredible how far Luna has fallen. My guess is that no one ever thought of it. And there was a lot of discussion in our community about LUNA. I have seen many people who have decided that they will not invest in cryptocurrency in life due to so much loss in LUNA.

In fact, one of the reasons LUNA has fallen so much is that LUNA has a stable coin. And that UST went below $0.50. It's really sad, And the authorities could not maintain its value. It sold so well that its Pegd was lost. The UST that it would be like that was really unbelievable or very sad. It's an event I think everyone will remember for a long time. LUNA, however, was a very popular project of Metaverse Technology. And we know that at present traders are very interested in the tokens of Metaverse technology. LUNA was in a very good position in Metaverse technology.

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Do you think its price will bounce back?

If Luna wants to return to its previous price, Lunar's market capitalization will have to surpass Bitcoin. I don't think that's ever possible. And since it can't go above the bitcoin market capitalization, it can't go back to its previous price. This is what we can think of. But nothing is impossible in the future. It may be thought or hoped that one day it may be possible. But that is an impossible thing. So in a word, if I say that LUNA will not be able to stay at its previous price very easily. Then LUNA market capitalization will increase many times more.

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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.

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The current situation has led to recession not only in the cryptocurrency market but also in all levels of the world market. As we have discussed in the above episodes, the current state of the stock market is very bad. Also the price of anything has gone up a lot due to this situation. In that case, we can see that the price of the cryptocurrency market has come down a bit due to this situation. However, if the situation is normal, we can expect the price to go up again.

And since that has had an impact on the Steam ecosystem, I personally don't think there's any kind of pressure here as a user. I take this very naturally and am very confident about the steam ecosystem. Because if this issue is not only built on the steam ecosystem, then this bad market situation has fallen on the whole cryptocurrency market and stock market. Which means it's about to be the most delusional time of the year, as well as the most delusional.

Also, I have been working on the steam ecosystem for a long time, it has changed my life completely. So I personally have a lot of confidence in the steam ecosystem and I am very optimistic that the steam ecosystem will be normal when this situation is normal. This is my idea and this belief I keep in mind. Because of my previous experience, I have seen that when the cryptocurrency market prices are normal, everything in the steam ecosystem is normal in the market.

As far as I'm concerned or personally, I can say that when the situation is normal and the whole crypto market is normal, then the price of Steem ecosystem will be normal. However, the current price fall of the Steem ecosystem is in the global market. And it has an impact on the Steem ecosystem. In that case we can say that if the situation is normal then the Steem ecosystem will become normal. But what happened in the case of LUNA is an exception, we must say. This was due to the fact that those in charge of LUNA did not maintain it properly, it was their personal fault that the price of LUNA fell so much.

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Conclusion

In conclusion, I can say that there is nothing to be disappointed or worried about in the current situation. Hopefully everything will be normal when the world situation is right. So we have to wait until then, and when the situation is normal, the price will increase gradually.
I want to invite some of my favorite people and I'm glad I was able to come here, so I invited them. @salmanabir @hasiburrahman1 @razuahmed