Cryptocurrencies have seen a significant drop in recent weeks due to several key factors:
The collapse of UST and Luna: The collapse of the Terra token (Luna) and its sister stablecoin, TerraUSD (UST), generated panic among investors, leading to a massive sell-off in the cryptocurrency market1.
Rising interest rates: The US Federal Reserve and the European Central Bank raised interest rates to combat inflation, which is usually an indicator of recession and resulted in a loss of confidence and selling of securities. digital assets
Stock market activity: There is a correlation between the stock market and the cryptocurrency market. When the former shows a downward trend, the latter often follows the same path.
As for predictions for the coming weeks, it is important to remember that the cryptocurrency market is highly volatile and prices can fluctuate rapidly due to a variety of factors, including supply and demand, government regulation, and perception of value. by investors.
Predictions suggest that both Bitcoin and Ethereum could see growth, but it is always essential to do thorough research and consider the opinions of various experts before making investment decisions.
In terms of advice for investors during these volatile times, experts recommend:
Diversify the portfolio: Do not put all your eggs in the same basket and distribute investments in different assets to minimize risks
Risk management strategies: Use stop-loss orders to limit potential losses and dollar-cost averaging to reduce the impact of volatility
Stay informed: Follow market news and trends to make decisions based on the most up-to-date information.
