After losing 28% of the value. Why did the price fall?
Attempts to identify the driving factors are often confronted with the formation of challenges, in light of the multitude of incentives and causes. This seems to be the case nowadays, as market monitors are trying to reveal the reasons behind the decline that led to the loss of the original cryptocurrency price of 28% of its standard January 20, the day the advocate of cryptocurrencies Donald Trump was installed as president of the United States. The following are the most common reasons for the low price of composition: The macro -economic fear of training is not the only origin that has reduced the price in recent weeks. The US stock market has also passed with a decrease in the lowest Nasdaq 100 index, about 7% from the last summit on February 19. Bitcoin is often seen as an origin with a ‘high beta’ laboratory, which means that when the shares move in a specific direction, the price of the largest coding currency moves in the same direction at a larger rate. The decline in stocks, and the simultaneous increase in US treasury bonds, are due to concerns about the potential economic consequences of Trump’s plans to impose more customs duties on commercial partners. “This decline can be considered a response to total concern about Trump’s definitions and geopolitical uncertainty,” says Caroline Powler, CEO of BTC Markets. The largest piracy process ever came the losses that came to their lowest levels in a few months this week in the price of “takbin” and the second largest encrypted currency, “Ether”, after the Baybit scholarship entered February 21. The attack, which was widely on the North Korean “Lazaros” group, drained about $ 1.5 billion in the stock exchange. This theft was not only the worst piracy process in the history of encrypted currencies, but also shocked the market participants because it directed a type of cryptocurrencies deposit, known as the ‘Cold Purse’, which was considered very safe because it included devices that were not connected to the Internet. Zuhair Ibtiqar, the employee of the encrypted foreign exchange fund “Split Capital”. He added: ‘I’m sure there are some people who somehow say,’ Learn what? Maybe I should wait a little more (referring to postponing the entry into the market to improve technical protection practices). The price of the composition, the investors naturally withdraw the money from the stock funds that follow the original. The launch in January 2024, with a total displacement of about $ 3.3 billion, according to the data Bloomberg collected. Small in the derivative market said they were renewed and others said they believe that the refuge of what is known in the coils coded as the ‘Cash and Carry Trade’ also played a role in selling pressure. This investment policy is a way to take advantage of the price differences between immediate and future markets. If prices in the futures markets are higher than immediate prices, the trader can sell futures, buy a ‘little’ from the immediate market and make a profit from the price difference. However, futures traders on the commercial stock exchange in Chicago remain in a defensive position, with the decline in the bonuses of ‘training’ futures on the stock exchange. The bonuses dropped to 5.7% for the month of March, with the daily grants for the next month to their lowest levels since last July, according to a report issued by K33 research on February 25. Risk dimensions, the founder and the largest investment strategy, said: “was mostly driven by players such as the hedge funds and/or options.” He added: “There are of course explicit sales. But we see the rise of a number of profitable investment opportunities as a result of this recent decline.” Trump’s trade has dropped, “the prices of many assets that, according to investors, will benefit from Trump’s return to the White House over the past few weeks. To some extent, it is considered the most important assets associated with the” Trump trade “, given the scope of its explicit support for the industry during his election in the campaign. Market participants expected, and inflation numbers in the United States, “said Paul Howard, general manager of the ‘profit market’. On Friday, Lomes expected it to take a more time to progress in the proposal of ‘stockpiles’, which many defenders of encrypted currencies want, and that “my bets are that we will see a state that has a strategic reserves from the formation before the federal government.” At the state level, it should be noted that the horizon is also not good: the lawmakers in Montana, North Dakota, South Dakota and Wiwang have voted against the creation of coded currency reserves over the past few weeks and pointed out concerns about the risks and fluctuations associated with digital assets.