{"id":17523,"date":"2022-05-22T22:45:15","date_gmt":"2022-05-22T17:15:15","guid":{"rendered":"https:\/\/zebpay.com\/?p=15113"},"modified":"2022-05-22T22:45:15","modified_gmt":"2022-05-22T17:15:15","slug":"why-is-bitcoin-going-down","status":"publish","type":"post","link":"https:\/\/zebpay.com\/in\/blog\/why-is-bitcoin-going-down","title":{"rendered":"Why Is Bitcoin Prices Dropping?"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_66_1 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/zebpay.com\/in\/blog\/why-is-bitcoin-going-down\/#First_Off_Why_Is_Bitcoin_Going_Down\" title=\"First Off, Why Is Bitcoin Going Down?\">First Off, Why Is Bitcoin Going Down?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/zebpay.com\/in\/blog\/why-is-bitcoin-going-down\/#High_Inflation_%E2%80%93\" title=\"High Inflation &#8211;\">High Inflation &#8211;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/zebpay.com\/in\/blog\/why-is-bitcoin-going-down\/#Drying_up_of_Liquidity_%E2%80%93\" title=\"Drying up of Liquidity &#8211;&nbsp;\">Drying up of Liquidity &#8211;&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/zebpay.com\/in\/blog\/why-is-bitcoin-going-down\/#De-Risking_Sentiment_%E2%80%93\" title=\"De-Risking Sentiment &#8211;&nbsp;\">De-Risking Sentiment &#8211;&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/zebpay.com\/in\/blog\/why-is-bitcoin-going-down\/#Rising_Geo-political_Crisis_%E2%80%93\" title=\"Rising Geo-political Crisis &#8211;&nbsp;\">Rising Geo-political Crisis &#8211;&nbsp;<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/zebpay.com\/in\/blog\/why-is-bitcoin-going-down\/#Bitcoin_price_wrap_up\" title=\"Bitcoin price wrap&nbsp; up\">Bitcoin price wrap&nbsp; up<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/zebpay.com\/in\/blog\/why-is-bitcoin-going-down\/#Take_Away\" title=\"Take Away\">Take Away<\/a><\/li><\/ul><\/nav><\/div>\n\n<p>The world of cryptos, which has made many millionaires overnight in the last few years, is currently experiencing a bearish phase. The crypto market has gone down by trillions almost every day this month. And even the oldest and the largest crypto, Bitcoin, has not been able to escape this fall. But Why? <strong>Why Is Bitcoin Going Down<\/strong>? Let\u2019s find out!<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"First_Off_Why_Is_Bitcoin_Going_Down\"><\/span><strong>First Off, Why Is Bitcoin Going Down?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The price of Bitcoin has been witnessing a decline since its all-time high of $69,044.77 (more than INR 53 Lakh) in November 2021. Today, as of May 16, its price is hovering around $29,000 (around INR 22 Lakh), which is even less than 50% of its price in November. So, what happened? What has caused this massive bitcoin crash?<\/p>\n\n\n\n<p><strong>Read About:<\/strong> <a href=\"https:\/\/zebpay.com\/blog\/crypto-investing-is-it-right-for-you\/\" target=\"_blank\" rel=\"noreferrer noopener\">Crypto Investing: Is it right for you?<\/a><\/p>\n\n\n\n<p>Well, there are various factors that are contributing to this bitcoin plunge; let\u2019s discuss them one by one in detail below &#8211;&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"High_Inflation_%E2%80%93\"><\/span><strong>High Inflation &#8211;<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><strong>&nbsp;<\/strong>The covid-19 pandemic has severely affected the labour and consumption market in the last 3 years. As a result, the United Nations, in its recent report, has projected that global inflation is set to increase to 6.7% in 2022. This figure is more than double the average of 2.9% during 2010\u20132020.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Drying_up_of_Liquidity_%E2%80%93\"><\/span><strong>Drying up of Liquidity &#8211;&nbsp;<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The liquidity in the crypto market is experiencing a dry run mainly due to two reasons. Firstly,&nbsp; there has been a tightening of norms by the Fed and other central banks. And secondly, owing to the round-up of the Covid-19 pandemic,&nbsp; is squeezing away investors\u2019 time which they earlier used to put into investing in cryptos.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"De-Risking_Sentiment_%E2%80%93\"><\/span><strong>De-Risking Sentiment &#8211;&nbsp;<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Another factor that is being attributed&nbsp; to the bitcoin plunge is the ongoing risk-off sentiment among the investors. Bitcoin, being a crypto, is subject to high volatility and is currently facing the burn due to the growing risk aversion among the investors who seem to be more comfortable parking their funds in safe financial instruments given the inflation and stock market dumps.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Rising_Geo-political_Crisis_%E2%80%93\"><\/span><strong>Rising Geo-political Crisis &#8211;&nbsp;<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The ongoing geo-political war between Russia and Ukraine has further shaken up the confidence of investors in cryptos. The crisis is adding to market uncertainties and is thus causing a bitcoin crash and a dip in the value of other cryptos as well.<\/p>\n\n\n\n<p><strong>Read About:<\/strong> <a href=\"https:\/\/zebpay.com\/blog\/why-are-investors-confident-despite-bitcoins-price-drop\/\" target=\"_blank\" rel=\"noreferrer noopener\">Why Investors are Confident Despite Price Drop of Bitcoin<\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Bitcoin_price_wrap_up\"><\/span><strong>Bitcoin price wrap&nbsp; up<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Last week on May 13, 2022, Bitcoin fell below $26,000 (around INR 20 Lakh) for the first time in the last 16 months. This fell struck out more than $200 billion (over INR 15.5 Lakh Crore) from the entire crypto market in a single day. This might seem like a good buying opportunity to buy Bitcoins, right? Well, it is.<\/p>\n\n\n\n<p>As the saying goes, what goes up, also comes down! But the opposite of it is also true when it comes to digital assets, be it stocks or cryptos. The current time can be viewed as a golden opportunity where the world\u2019s largest and oldest crypto, Bitcoin, is available at significantly low levels.<\/p>\n\n\n\n<p>During 2020 and 2021, Bitcoin marked a new trajectory on its price graph, reaching over $60,000 (more than INR 46 Lakh) mark from below $10,000 (more than INR 7.5 Lakh) levels at the beginning of the pandemic-hit 2020. However, right before the beginning of 2021, it again plunged and hit a yearly low of $30,000 (around INR 23 Lakh), just to again rise to its all-time high mark of $69,044.77 (more than INR 53 Lakh) last year in November. And now again, the down trail has started where we can see bitcoin crashing and surviving near $29000 (INR 22.5 Lakh).&nbsp;<\/p>\n\n\n\n<p>An investor can only taste success if they remain disciplined. It is the market\u2019s nature to be dynamic and hit different lows and highs. But, as an investor, one must take these decisions rationally and only after thorough research.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-take-away\"><span class=\"ez-toc-section\" id=\"Take_Away\"><\/span><strong>Take Away<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Bitcoin started its journey in 2009 with a value of $0 and has since seen various highs and lows, including a recent price level breach of $69,000. The crypto market is indeed highly dynamic and sensitive to almost all economic and geo-political issues. However, at the end of the day, it remains a financial instrument that works on principles and logic. So, if you are also planning to begin your investment journey with cryptos, wait no further and start trading on <a href=\"https:\/\/zebpay.com\/\" target=\"_blank\" rel=\"noreferrer noopener\">Zebpay<\/a> today.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The world of cryptos, which has made many millionaires overnight in the last few years, is currently experiencing a bearish phase. The crypto market has gone down by trillions almost every day this month. And even the oldest and the largest crypto, Bitcoin, has not been able to escape this fall. But Why? Why Is [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":17420,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"_ayudawp_aiss_exclude":false,"footnotes":""},"categories":[14],"tags":[],"acf":[],"_links":{"self":[{"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/posts\/17523"}],"collection":[{"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/comments?post=17523"}],"version-history":[{"count":0,"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/posts\/17523\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/media\/17420"}],"wp:attachment":[{"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/media?parent=17523"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/categories?post=17523"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/tags?post=17523"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}