Why Is The Crypto Market Down In October 2023?

The year 2023 started on a positive note for most cryptocurrencies. Last year after bearing the brunt, most of the crypto tokens took the path of recovery. However, the crypto prices are still low as compared to their all-time highs.

The price of cryptocurrencies has been through a rollercoaster ride in the first half of the year. Will the other half be a slow growth or will the cryptocurrencies reach new heights and recover completely from the loss faced in last year?

How is the Crypto Market Performing?

The crypto market is swinging from left to right, comfortable in limited range and smooth curves. The FTX fallout in the year 2022 shook the market and turned it downside. This year gave a fresh and positive perspective to major cryptocurrencies like Ethereum and Bitcoin, which gradually turned green helped by the relaxed macroeconomic situation of macroeconomic and cooling inflation.

Nevertheless, the market sentiments have slowly turned from fear to greed and then to neutral. This is the nature of the crypto market which is highly volatile and unpredictable. The cryptocurrencies were showing a sign of stability last month but due to the U.S. inflation and its impact on liquidity.

hikes has moved the crypto market upside down. Bitcoin crossed the level of $31,000 in July 2023 and is again at a low in August 2023 at $27,000 but has shown immense recovery in October at the level of $34,495. This has left the crypto investors confused and nervous.

The current volume in the digital crypto market stands at $41.21 billion. However, if we talk about the world’s largest cryptocurrencies, Bitcoin and Ethereum were at the top of the charts till last month and showing signs of recovery. As of October 31, 2023, Bitcoin is trading at $34,497 and Ethereum is trading at $1,808.