Nerdly » What is Happening to Cryptocurrency Rates Now?

12th Jun2023

What is Happening to Cryptocurrency Rates Now?

by James Smith

We will say nothing new if we say that the cryptocurrency market is incredibly volatile. It constantly goes through boom and bust periods, leaving many people doubting the point of crypto investments. Bitcoin is the driving force of the whole Cryptocurrency live prices. Having the largest capitalization in the industry, Bitcoin is always the first to set the market trend – the first to drop and rise. The recorded all-time high of BTC is over $64 000. In February 2023, one coin costs slightly over $23. In November 2022, the price dropped to a little higher than $15. Why do such sharp jumps occur, and what has been happening to the market lately?

What Affects the BTC Price?

Cryptocurrency live prices are never stable – they change daily and show sharp jumps and drops throughout their existence. The market lives through trends – bear and bull periods when prices massively drop or rise. In 2022, the crypto market faced a bear tendency that is still lasting. There were some reasons for such market behaviour. By and large, they came all together, causing the collapse:

FED increased interest rates, and it started to be expensive for people to borrow funds for business
Inflation and fears connected with its coming
The large-scale war in Ukraine.

In November 2022, another large event pushed the market down – the FTX exchange collapse. The platform used to proceed with over one billion transactions a day. After it revealed its financial problems, investors started to withdraw funds from it massively, causing another market drop. All these and other factors lead to the downtrend that is still saving its tendency today. However, the bear trend is a good time to select the best crypto to buy at a low price. The fact is the downtrend is the time for investors to see what crypto projects survive and select the strongest ones for investments.