Steemit Crypto Academy Contest / S1W4 - Reviewing The Instability Of The Crypto Market by @sameer07

I hope all will be fine by the grace of God. I hope All will doing great work on Steemit. I'm also happy in my life and enjoying myself with steemit.

Today, I'm here to take participate in Week 4 contest of Steemit Engagement Challenge. Today, i create post in Steemit Crypto Academy.

^{Image is Designed from Canva by @sameer07}

In this week or contest we will discuss about that crypto academy asked us, your review the insatiably of the Crypto Market. Now, i will share you my review about instability of the Crypto Market.

So let's start,

Q.no:1- 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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As you know and see that crypto market is volatile right now, at the start of 2022, we can see that this is recession year. It can not be rare for those who are for some time in this market.
If we see 2017 as a example, 90% coins lost their values this was the biggest downfall in Cryptocurrencies markets. So in this year, we all will Prepared in advance for that situation.

If we see the market, market is downtrend from the start of 2022. Bitcoins but could not above 55k, which is scared the investors. Now investors more scared when the price of bitcoin went more below at 30k. Which cause the market to fall.

I believe that, most investors would withdrawal their investment form crypto market which is very really cause to harm Crypto Market.

There are may be some reasons the Cryptocurrencies markets facing this shortcomings, these given reasons stand out for me;

I- Investors Withdrawal Their Investment

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When Top investors know that crypto market going to move down they withdrawal their all investment in this situation they think they save their investment. But this withdrawal of top traders or investors has pull more down the market and reason for this insatiably of crypto market.
In this situation, i believe that as long as big investors keep save their investment in market this down trend Will come after some time it would reduce this duration of the downtrend of this crypto market. If More investors come and invest their investment more beneficial for this Market.

II- Volatility of the Cryptocurrencies Market

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As we know that, Cryptocurrencies is volatile assets, that means Cryptocurrencies has the tendency of moving up and down in short time. These volatile assets are not be too trusted when we comes to investment because movement of Cryptocurrencies market are hardly predictable. So this is main reason for decline me.

Causes Of This Drop

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• When the demand of the every thing in market increase same as, when the supply of Cryptocurrencies in Market become more than it demand so it's price decrease. In these days the number of sellers has increased, the market id is slowed up due to huge rush.

• When the top traders and whales of market left the crypto market the market is slowed up and cause huge drop.

• As we know that, many coins following bitcoins price, when bitcoin loss its worth in market. So, all coins loss double or triple loss than bitcoins.

• Another Cause of this Drop, was the Terra blockchain, as in just past week Luna has lost it's value, and this blockchain was almost finished, this is also big reason.

How Long Do You Think It Will Continue In This DownTrend

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I can not say and i have not confirmed how it will take for the downtrend for finish, but we have witnessed a blockchain going to zero. Due to it's, many people's will be back and many in shocked. Many people's ready with their investment for fill those gaps so not worried about may be Market will go into uptrend but undoubtedly go in up trend or may be it will take some time

We know that nothing is permanent. Before this, we have seen many drop market as well as bullish Market. The market is back, now the trend will be opposite of current trend.

Q.no:2- Why Doesn't This Drop In The Price Of A Few Coins Decrease Thier Trading Volume (E.G: Bitcoin)? How Will They Deal With This Market Instability?

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I think most people's know this Trading Volume, if I'm right? If someone don't know, then they don't worry about it.
Trading Volume is the number of tokens and it's also called share of markets that are sold and bought. Trading Volume talk about us the amount of particular asset and this asset used for trade in given time period.

Cryptocurrencies such as Bitcoin is one of the Cryptocurrency with many investors. Bitcoin is the one of the expensive coin in Cryptocurrencies markets. In these days bitcoin dropped below $30k and we have also see that volume of the market still not too much affected. In this signal investors of the Cryptocurrency market are confident and holding their coins or assets instead of selling them.

Generally, when the volume is not Decreased in which but price is dropped. That is true signal of an upcoming bullish trend. We can imagine or expect huge bullish trend soon in the market. Before, BTC jumped from 30k to 60k, so we can expect this level very soon.

How We Deal With This Market Instability?

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The trader's that are too much worried about their huge loss. They don't worry about this DownTrend. It's time to enhance their investment and hold it for a long time instead they gain huge profits.
This is the best way to Dealing With This Instability.
Many people's loss a lot in this downtrend. But the best thing is deal with market of instability is to do nothing.

Q.no:3- What Is The Relationship Between The Current Instability And Downfall Of The Terra Ecosystem And It's Luna Currency? Do You Think It's Price Will Bounce Back? If So, Tell Us How And When?

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Image Source

We have seen very huge loss of the Terra Coins including the stable coin of the Terra USD (UST).
Stable coins are stable Crypto Assets that are not affected by the overall market trend.
Supposed some stable coins such as Dollars,Euro, Sold etc. UST stable coins was unpegged from 1$ and it's face very huge loss of about 70% negative.

The Downfall of Terra Ecosystem has effected the whole crypto market as you know that Terra was a big Blockchain with $25 billions market capitalization. When this instability began, many investors lossing their trust on Ecosystem, that Why they taking out their investment from the blockchain. Which resulted total market of Capitalization of the Terra blockchain going $2.5 billion from $25 billion

Now at this same time, bitcoin price was not stable now many people's started selling their Cryptocurrencies in the fear that the Crypto is may end now which is definitely contributed to the current stability.

Terra USD was a stable coin of Terra blockchain, same as SBD is stable coin of Steem blockchain, that has been equal to 1 dollar. When it's price went below $1, it will definitely scare the investors then investors shift another coins and invest their assets. This is one the main reasons for the current instability that the stable currency went down to $1.

Do You Think It's Price Will Bounce Back? If So, Tell Us How And When?

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Its Challenging for Luna price to go up again, many investors already scared of the Terra Ecosystem and they not want risk again to their investment. But we know that everything is possible at correct time, Terra blockchain team work hard to make it once again scratch. But it will take some time it may be months ot years for the luna to rise again.

It would bounce back or not, it will strongly dependent on what the owners of Terra Ecosystem would do. If the coin may not bounce back ,but if they sit down and Re- Strategize. I believe that price would rise in time.

Q.no:4- Our Steem Ecosystem, Like Most Currencies, Had 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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Following This question, i would like to say in my answer No . I'm not worried about the loss of the value of Steem. As you know that I asked in my favourite blockchain review, steem ecosystem blockchain is my favourite blockchain among all their blockchains but i completely trust on steem ecosystem. I'm little old user of steem blockchain, but according to my research, steem coins has many experienced dumps in past.

I also read the crash of 2017-2018, when the steem price was above $5. But after it i saw it went to all time low. I was just 18 years old and I'm new in Crypto market, who didn't know about this ecosystem, but i never doubted this project.

This is not the first time Cryptocurrencies ecosystem is experiencing down. Bitcoin was the first Cryptocurrency to be known began it journey gradually b/w 2009-15. I read in research, in April 2011 bitcoin jumped from 1 dollar to 29.60 dollars. Which was huge profit. But the same year bitcoin was dropping in November $2.08. In 2021 the price of bitcoin was very high $60000 which also drop $29796 in July 2021.

So I'm confident that the Steem Ecosystem has come to stay and better days ahead for this Ecosystem

At end i would like to say that,
Wait And Watch, Good Days will Come Again.

Conclusion

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Cryptocurrencies market is highly volatile and this thing is a fact that the decrease and increase prices in Cryptocurrencies in a case. This condition of Cryptocurrencies market faces various factors such as demand to low and supply is too high investors losses, money take out. This drop will recover soon.

At the end of my post, i would like to invite my friends @khan770, and @alirazaop. I hope they will participate as soon as possible.

Best Regards 💞,
@sameer07