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Why are Bitcoin, Ethereum and Solana prices in free fall? Analysis of the reasons for the breakdown and the prospects
The news of the day is the news Collapse of cryptocurrencies with Bitcoin and Ethereum prices continuing to lose ground compared to the already lower values of the past week. The renewed decline in global market capitalization of the sector belies the optimism of those who had already suspected a possible recovery in the first half of December at the end of November. The truth is that cryptocurrencies have been and will remain under pressure.
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The numbers attest to this situation. Bitcoin is now trading in the $ 46,800 area below the 200-day moving average (the collapse of the support level at $ 47,000 has paved the way for further declines).
It’s no better than Ethereum, which marks a drop to $ 3,760. To wrap up the cryptocurrency crisis are the declines in the most heavily linked DeFi assets (starting with Solana) and the sharp decline in Binance Coin, which is down 7.44 percent and drops to $ 526.
In short, there are no niches in the entire crypto sector that appear to be resisting the new bear market. This means that there are no assets to pull back on while waiting for this new negative period to end. So how do you invest in this situation? One of the easiest options could be to shop at the current low prices.
This strategy is a classic of similar situations, also because today, thanks to brokers who offer a complete trading service like eToro (here our review), it is possible to add several cryptocurrencies to the portfolio by working on the same platform and always having the option of Practice with the free virtual demo of 100,000 euros.
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Theoretically, the strategy of buying at low prices applies, while in practice always the Reference context. Analyze the reasons for the new Collapse of cryptocurrencies it can be a good start.
Why did cryptocurrencies collapse?
There could be some negative news from Asia behind the new cryptocurrency crash. In fact, in the past few weeks there have been rumors of a new wave of Take action on cryptocurrency mining which could very soon be implemented in China and India.
In addition, there are press rumors about Binance’s alleged intention to remove its trading platform from Singapore by February 13, 2022. The possible change of the exchange had an impact on the price of Binance Coin, with effects also on the first in the class.
From China to India to Singapore, The message from Asia is very clear: the regulation of the digital assets sector is becoming ever stricter. Traders who trade digital assets should consider this scenario and act accordingly (click here to access the eToro site and invest in cryptocurrencies).
Is it worth buying now?
After the reasons for the new have been clarified Collapse of cryptocurrencies (Bitcoin, Ethereum, Binance Coin and Solana)Now there are more elements to understand whether the current moment is favorable to buy at a discount or whether it is better to wait.
Given the dynamism of digital assets, it is possible that the trend will remain marked by pronounced volatility during the current week. Should more negative news arrive, the decline in cryptocurrencies could continue in the next few days. However, it is possible that reaching some technical levels could also reverse the current trend and raise prices again.
Anyone who has bought cryptocurrencies in the past few weeks shouldn’t panic. Selling beyond irrationality is never a cheap choice. It is also better to wait because the estimates for the next year are very encouraging, as the 2022 cryptocurrency projections show. So the pace change is just around the corner. However, it is important to choose brokers with advanced tools to operate in a period of high volatility. An example is eToro Copy Trading, thanks to which it is possible to copy from the best traders.
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