Digital currency is a weird bird. Currencies tend to move in flocks. When one flock goes up or down, so do the others. It is normal for cryptocurrencies like Bitcoin and Altcoin to go through their rough patches. However, in some of the more recent weeks, it appears that altcoin has taken a big hit.
Which Begs The Questions: Why?
Why is altcoin being hit this hard when currencies like bitcoin continue to grow higher.
An important fact to mention is in regards to the SEC. They are set to make a decision on an approved ETF cryptocurrency fund on the market. They decided to delay their choice until the end of next month. Another issue occurred when ethereum took a dip. It hit below $300. That has been another blow to the cryptocurrency market.
Some might think that does not have a bearing on what is happening in the current market, but it does. Their delay in the approval could be signaling something is wrong. The irony is that bitcoin continues to take charge and soar in the markets.
Some detractors like to point out the high volatility of bitcoin, but do not tell the investors that. A lot of investors see bitcoins as one of the safest cryptocurrencies on the market. It is stable. You can rely on it, at least for now.
Bitcoin is an established currency in the market. It holds up well especially when the bear market hits. Investors do not like to take a chance on something new, including ethereum.
Other Political Concerns
There is a lot of civil unrest happening overseas, including in Turkey. There are a lot of investors who want to sell their shares and get out. The political and geopolitical situations play a large role in how the market holds up. The investors who do stay in want something they can count on.
A recent report indicated that the Turkish lira has fallen hard. Investors in Turkey are placing their faith in bitcoin because they can trust it above anything else. That faith translates to a lot of investors here in America.
What Happens To The Rest of The World?
The situation in Turkey might provide a glimpse of things to come, including on a global scale. There are a lot of people who do not trust the cryptocurrency market right now, including altcoin or ethereum. Is that going to change? Only time will tell what happens. Some investors might rely singlehandedly on something like the BTC. Some of them might close up shop altogether.
What Happens To Bitcoin?
Bitcoin is in the lead, but some investors are struggling with BTC too. Investing in cryptocurrency involves a certain amount of speculation and high risk. You need to trust the market and hope that it turns out well. The only thing we can do is take one day at a time.
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