The cryptocurrency market can experience downturns for various reasons. Here are some common causes:
Market Sentiment: Cryptocurrencies, like any other asset class, are influenced by investor sentiment and market psychology. Negative news or events such as regulatory crackdowns, security breaches, or scams can lead to a decline in confidence among investors.
Best Strategies for navigating through a down-market:
As observed, the black market is declining as more USD supply enters the market. To completely stabilize the market, the NBE should lift some restrictions, such as granting USD access not only to travelers but also to locals and raising the current limits. This would eliminate the need for people to turn to the black market instead of banks.