There were cries everywhere, and the entire network plummeted. What happened? Does Fil still have a chance?
In early August, Bitcoin fell below $50,000, which was the lowest point since mid-July. Regarding this plunge, Yu Jianing, co-chairman of the Blockchain Committee of the China Communications Industry Association and honorary chairman of the Hong Kong Blockchain Association, told the Beijing Business Daily reporter that changes in market expectations are an important factor leading to Bitcoin price fluctuations.
After the US Federal Reserve announced that it would maintain interest rates unchanged and hinted that interest rates might be cut in the future, the market may have digested this part of the positive news in advance. In addition, the interest rate cut by the Bank of England failed to boost market confidence, but further exacerbated market uncertainty.
Filecoin prices have experienced a turbulent quarter, affected by a variety of factors that led to its decline. The bearish trend of the broader market played an important role, as investor sentiment was generally depressed, adhering to the seasonal motto "sell in May and walk away".
This trend indicates a pattern that traders sell their holdings in May to avoid the summer stock market crash, and this strategy seems to have spread to the cryptocurrency market, affecting assets such as Filecoin.
Filecoin has seen a disturbing decline in active storage transactions, down 6% from the previous quarter. This decline has severely impacted the platform’s storage utilization, which stands at just 26%.
But Filecoin bulls are still struggling to deflect the market downturn that FIL is currently experiencing. But given that the coin is currently supported at $3, we may see a rebound in the medium to long term.
