Short analysis of the current cryptocurrency market situation (Personal opinion)
Greetings Project Hope friends, I hope you are all doing very well, and that this week that is coming to an end is progressing well for everyone.
Those of us here at Steemit, usually our contact with cryptocurrencies is close, this will not be the only crypto we have, so being aware of what is happening in the crypto environment is very important. It will not be a surprise for anyone to know that cryptocurrency prices have dropped considerably since a couple of days ago, registering drops of up to 20%, especially in altcoins.
What is behind these price declines, like everything macroeconomic, as I understand it, it is never just one thing that affects, although clearly, there is always a trigger. The global macroeconomic condition, as I have said in other oprotunities, is not easy at all.
I have learned that the effects of economic policies take effect months and even years later, and it is worth noting that last year, the FED started raising interest rates, which directly affects investments by decreasing borrowing capacity, as it would pay a lot in terms of interest. It has already been a year since that first increase, which makes the economy to be quite affected at the moment.
However, and beyond this, or in addition to this, we have specific attacks against the two most important exchanges, such as Binance and Coinbase.
Recently the SEC has made two lawsuits against the two exchanges I mentioned, making the market extremely nervous and fearful. At this very moment, if we value the fear-greed index of cryptocurrencies, we will see that the trend is more fear than greed, meaning that probably many coins are now at a very low price relative to their value.
Does this mean that you should buy? not necessarily, that is a very personal decision and each person should do their own research before making a decision, this is not investment advice. But I do recommend to be very careful at this time because anything can happen.
Let's wait patiently, for this helps a lot the long term vision, and let's be consistent in our work. GREETINGS, I bid you farewell.
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Dear @josevas217
Finally I've found some time to catch up with few previously bookmarked publications.
On the first glance, current market conditions are absolutely awful. Coinbase and Binance is kind of "in trouble" and pretty much all altcoins are bleeding out like crazy.
I myself am trying to be more optimistic. The way I see it is that news of SEC sueing Binance is of a great magnitute. It SHOULD crash market more than collapse of LUNA or FTX. And yet, we didn't see as much panic sale as I would expect.
BTC only went down by few %, which proves that there isn't that many investors willing to dump their BTC at current price level. And this is solid confirmation of strength of this market. Wouldn't you agree?
Have a great week ahead of you :)
Yours, Piotr
Hello sir hope you are well. I have posted achievement1 but not verified yet please do.
Hello, It is not good to leave comments that have practically nothing to do with the publication. On the other hand, I am not a moderator in Newcomers, so I can not verify any publication there, but I am not a moderator there. Greetings.