Causes of the continued decline in Crypto Assets, Check Out the Full Review!
BONSERNEWS.com – The bitcoin crypto market is being shrouded in a cloud.
The movement of the bitcoin crypto market on Wednesday 3 August 2022 was still observed to be slightly corrected and this was a three-day price drop in a row since early last week.
Then, what causes it?
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Launching from CoinMarketCap, of the 10 largest market cap crypto assets or big caps, compacts experienced a slight decline to the red zone in the last 24 hours. For example, the value of Bitcoin (BTC) plunged 1.77 percent to $22,757 per chip in the past day.
Meanwhile, Ethereum (ETH) fell a further 2.07 percent to $1,598 at the time. XRP, Solana (SOL) and Dogecoin (DOGE) had a worse fate as they fell 6.11 percent, 7.58 percent and 4.32 percent respectively.
Afid Sugiono Trader Tokocrypto sees that so far this week the crypto market movement pattern is still difficult to show its best performance. The basic thing that happened was that the market failed to revive, after many investors took profit-taking actions and at the same time trading volumes have been seen thin since Monday 1 August 2022, so there is a possibility that investors are waiting and seeing playing in the crypto market.
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“The volume of transactions, especially Bitcoin from on-chain data, was observed sideways, even though the price had risen last week. Investors also changed their direction not to accumulate when BTC failed to break the resistance level of US$23,000. As a result, investors chose profit-taking rather than accumulation,” said Afid .
Afid sees that the current price correction is still relatively normal in the crypto market. An increase in crypto prices must be accompanied by a correction or retest first, before going high again.
“Thus, investor behavior at this time is normal, and if the magnitude of these profit-taking increases in the coming weeks, they could act as a catalyst for another bearish continuation in the short term,” he said.
Crypto Market Negative Sentiment This Week
The crypto market sank in trading Wednesday 3 August 2022 after Fed officials signaled the central bank still intends to raise interest rates until inflation is under control. The comments proved enough to drive the price of Bitcoin and other crypto assets plunging.
The Fed official’s comments come after the latest US economic data showed that US job vacancies in June 2022 fell to a nine-month low, a sign of increasing economic pressure. The US labor market has been a bright spot in the economy, if not losing momentum and possibly headed for recession.
In addition, US Speaker of Parliament Nancy Pelosi’s trip to Taiwan has created a new pressure point for investors already dealing with the prospect of a US recession, rising interest rates around the world, and risky entrenched inflation as Russia’s war in Ukraine exacerbates the food crisis.
“Investors’ nervousness on Wednesday was enough to put pressure on the market. The risk asset market will come under pressure after Pelosi’s trip to Taiwan which could lead to geopolitical tensions involving China. If the stock market crashes, it is not impossible that it will affect crypto. Then, Taiwan as semiconductor chip manufacturers if there is tension it will disrupt supply and affect crypto mining,” said Afid.
While technical analysis, the resistance level for Bitcoin is 23,509 US dollars and the closest support point is at 22,850 US dollars. As long as the BTC price correction doesn’t breakout the support of 21,000 US dollars, then this is still considered normal.()