2 reasons behind the fall in price

As stocks soared into trading on Monday, major cryptocurrencies continued their recent journey through a dark red. The price and exchange rate of Bitcoin (BTC) is falling. Several reasons allow us to understand the reasons for this fall.

The collapse of the Terra Luna ecosystem

Bitcoin has fallen nearly 4% in the last 24 hours to reach the low end of the $ 29,000 to $ 30,000 range. The largest cryptocurrency by market capitalization has fallen 26% from this month’s high: nearly $ 40,000. Ether, the second largest market capitalization cryptocurrency, fell about 3.5% over the same period.

The fall in Bitcoin prices deepened in May 2022. It comes after the stock market crash and the collapse of Terra Luna and Terra USD which lost almost all of their value. To the dismay of investors around the world, Bitcoin fell below $ 30,000, causing huge financial losses.

Real-time Bitcoin price

The influence of US financial markets

A number of different factors can influence the price of a given cryptocurrency. In particular, we can highlight the behavior of investors. Many of them connect their coins to the stock exchanges. In other words, when the stock market is red, encryption also follows this trend. However, Bitcoin is no stranger to accidents. Although it is an extremely popular cryptography, its price has been affected by the smallest of events. Even Elon Musk’s announcement that Tesla would no longer accept Bitcoin caused the market to plummet in May 2021.

Falling prices are not exclusive to Bitcoin. Several other cryptocurrencies that are not linked to a traditional asset are also experiencing a sharp decline in value.

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Erica Masson
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