The increase in cryptocurrency prices is generally caused by various factors such as supply availability, FOMO status, statement of several influential people and others. However, some unexpected or unexpected events can also make crypto prices chaotic and maybe even fall hard downward, this year was initially predicted to be a good year to start investing in crypto. But some of these events make predictions that some crypto observers, investors and some developers / communities can slip, and here are some things that can make the crypto market bearish.
1. Corona Virus
The downward trend in crypto prices has begun to be seen since February, the effect of this outbreak has caused some companies to close down and have their employees work at home. In addition, the effects of this outbreak also made the economic sector sluggish and affected the purchasing power and supply of food supplies.
Unfortunately, countries with the largest users of crypto such as China, Japan, Korea, America, and Europe became the worst affected regions (Italy and China even did Lockdown). Although the body had risen again, the crypto was again hit by a second factor.
In addition to cryptocurrency, the coronavirus outbreak also caused the Pasaham market to also experience a massive price decline.
2. Oil Market Plummeted
A decline in the price of crypto by a commodity is common, in this case, oil price competition between Russia and the UAE causes the global oil price to decline and this also affects the price of crypto which drops more than 20% in one day.
Unfortunately, this price war continued for days now and the downward trend in oil and crypto prices continues
Image: price drop of the 3 biggest cryptos and the price of Brent oil today 16 March 2020
I am not dismissing that besides the two factors above, other factors cause crypto prices to experience insane price falls. but, I assume that the factors above are the main cause. If you know about other factors, please let us comment (sharing is good)
I have not traded crypto since the beginning of March and moved my cryptos to Fiat and Stablecoin to avoid losses. There is no harm in buying crypto as well "while it's cheap," but I see it at risk for purchase now. This is just a suggestion, you should not trade crypto until the world financial markets begin to stabilize or rise, at least until next month.
Make this article as a reference, everything is in your hands