Introduction

Greetings, fellow steemians!
I'm excited to be a part of this steemit engagement challenge "Blockchain through the concepts" and I'll be Reviewing the Instability of the Crypto Market So let's begin.

The cryptocurrency market has undergone a severe decrease in recent days, causing significant instability; many investors have lost a significant amount of money during this time, but trading volume has remained stable because investors are still hunting for opportunities in various positions.

• 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
  

Because of the unpredictable character of the nascent asset class, the global cryptocurrency market has seen its fair share of wild falls in varied degrees, this is why crypto fans, traders, and investors need to do their homework before investing in any crypto asset.

Following the latest crypto market downturn, with Bitcoin hitting $28,600, Ethereum around $1,900, and several other coins in a slump, it's reasonable to say that the "bears" are having a great time in the market. Because cryptocurrency is a quickly evolving area, investment and technological rules and changes will have a significant impact on results; assets can vanish overnight, and because crypto is so volatile, let's look at some of the things that might cause the price of a particular coin to fall substantially in a short amount of time. Here are some potential causes of price fluctuations:

Manipulation of the Stock Market
In the crypto realm, a "whale" is an extremely affluent investor who buys or sells in large number of coins at once. A large market order, especially for coins with a low market capitalization, can have a significant impact on supply and demand dynamics, changing the price.

Market manipulation is frequently the cause of price movements of hundreds of percentage points in many tokens. So many people buy and hold a coin in a concerted effort, causing the price to skyrocket , until some of them will choose to sell and make profit which lead to drop in price of the token.

Profit-taking
Some Investors will decide to lock in their profits and begin selling if the price of a coin climbs for an extended length of time. If a large number of investors do so at the same time, the coin's value will fall, because not all investors have a HODL mentality.

Hacks
If a coin or service associated with it, gets hacked, the value of the currency may fall due to a loss of trust in the project. In f 2017, this happened to the Ethereum ecosystem. A series of hacks affecting exchanges, and multi-sig wallets occurred, followed by a decline in Ethereum's price for several weeks.

News
On social media, crypto project teams frequently make updates to their community. These announcements can be about new alliances, team members, advisers, initiatives, or any other relevant issue, and they typically influence coin demand based on how they are perceived by the community eg Reddit or Twitter.
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Rumors
Rumors usually always circulate before a project team makes an official announcement. Many people try to beat the price swings that occur after an official announcement by buying or selling based on rumors.

Changes and Upgrades
The price of a currency may fluctuate if it is about to undergo a change, such as upgrade or burn. Changes in trust in a project, such as new features can cause the price to fluctuate.

how long do you think it will continue in this downtrend?

BTC is already up 20% today, but there's still a long way to go before it reaches complete recovery. Bitcoin and a few other coins like STEEM have already begun to pull back but no one knows how long it will take for the price to bounce back fully. How long will it take for the price to bounce back fully is a question that everyone, even me, wants to know the answer to.

When it comes to cryptocurrencies, a sharp drop in price is unavoidable, It has occurred before, it is happening now, and it will certainly happen in the future. But, as investors, all we have to do now is create a technique to lessen the consequences of this negative position and avoid being severely impacted.

• 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 number of units traded in a market at any particular time is referred to as volume. It's a count of how many individual units of an asset changed hands during that time frame. A buyer and a seller are involved in every transaction. The transaction is registered by the facilitating exchange when they reach an agreement at a specified price. The trade volume is then calculated using this information.

Any trading asset, such as stocks, bonds, fiat currencies, or cryptocurrencies, can be used to calculate trading volume. For example, if Sonia sells 5 BTC for 20 USD each, the transaction volume can be either 100 USD or 5 BTC, depending on the denominated trading volume. This also means that the trading volume of a stock, for example, relates to the number of individual stocks exchanged during the measurement period. So, if 100 shares are exchanged in a single trading day, the stock's daily volume is 100 shares.

Traders try to utilize the volume indicator as an attempt to acquire a better grasp of the strength of a certain trend. When price volatility is accompanied by large trading volume, the price move is thought to be more valid. If a price change is accompanied by low trading volume, it could signal that the underlying trend is weak.

Price levels with historically high volume can also provide traders with insight into where the ideal entry and exit points for a given trade setting might be. A growing market should often see increased volume, indicating continued buyer interest to keep prices rising. In a downtrend, increased volume could indicate increased sell pressure. Reversals, exhaustion moves, and sudden price shifts are frequently accompanied by a large volume increase, as these are the times when the most buyers and sellers are engaged in the market.

• The best way to ensure market stability is for investors to gear up and try to invest more, this will, in turn, play a key role in market stabilization.

• A moving average can be to measure the volume of the candles in a certain period and produces an average, is frequently included in volume indicators. Traders can use it to asses the strength of the current market trend.

• Long-term investment strategy can assist to stabilize the market and control volatility. For instance you might use a 15-year investment strategy which will to boast market stability.

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

Like I said initially that one of the things that can cause decline in price of an asset is market manipulation which I believe is one of the cause to instability of the TerraUSD and also a contributing factor to Bitcoin price declination. From a very reliable source which also stated that a considerable amount of UST was handed in exchange, causing the UST reserve's liquidity to drop below the $1 peg. The accused carried out the transaction at the moment, causing the BTC market to tumble as numerous positions were shifted. The report also revealed that , a large LUNA holder, is running a scam, and that the slippage which drove many users to withdraw their funds, which crippled LUNA and UST. The attackers will be able to repurchase Bitcoin at a cheaper price and repay their loan with a large profit.

Many people claimed that this conspiracy was to be blame for the market's massive drop. The LUNA network's block production ceased for a while, and the Binance exchange and other exchanges suspended trade. Later, several LUNA pairings were reintroduced on Binance. Many investors sold other cryptocurrencies during similar periods, believing the crypto world was coming to an end, and this had an impact on price of other crypto currencies like STEEM.

Do you think it price will bounce back, how and when??
The LUNA coin has already lost greater its value; the margin is simply too large for a quick comeback. It will take a miracle for it to return to its previous level it dropped within a period of two weeks so I don't believe the coin will bounce back so easily.

Luna is now experiencing a decline in price, I am sure it will not take long for the assets to bounce back if the project owner makes the right move if not the project will vanish into thin air but the right is done I believe the token will bounce back gradually and market will become more stable and Bitcoin will finally begin to experience a bullish trend.

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

Virtually All crypto is experiencing a decline in price and steem is not exception, so many steem investor are worried but am not truly worried because I believe this period will surely turn to history one day , I remain quite optimistic about cryptocurrency in general. I feel that the events of today are unavoidable, and that as investors, we must always look on the bright side of things. As they say, the beauty of a tortuous and difficult road is in its spectacular conclusion, and I agree.

I am confident that the steem price will quickly recover, especially given the measures put in place for instance:

• For the time being, the Steemit author payout does not contain SBD, which I suppose is due to the market's rapid decrease, as I've seen in some postings. For more update click on the Link

Conclusion

In this post I was able to review the Instability of the Crypto Market . The decrease in cryptocurrency prices has resulted in significant losses for investors, with many of them losing virtually all of their assets. High volatility, as well as the demise of TerraUSD and its ecosystem, are to blame for the price drop.

Thank you everyone again, and I hope you have a nice day.

Thanks for Reading