Ethereum experienced a 6.7% decline over the past 24 hours

by | Jul 20, 2022 | Ethereum, Market, Market News, News | 0 comments

After decades, a new financial system was introduced in the market which overnight gained a lot of attention. The introduction of the digital currency market took the financial sector by storm. However, like any part of the financial sector, it was also subjected to various ups and downs as a result of various factors working together. In the last few months, the fall of digital currencies, such as Bitcoin or Ethereum has been quite evident. They have dipped power more than what was expected and even became a major concern for those involved with it.

Take a look at the causes of the downfall  of the digital currency

According to the various data recorded, it was observed that the value of the digital currency such s Bitcoin or Ethereum fell tragically low. It was a never before seen low that caused a lot of distress among shareholders and investors. They had to suffer huge losses that accompanied the dip in the value of the digital currency.

Even there have been certain times in the recent week that the digital currency had a good time. Many of the currencies managed to maintain a good or profitable status and even the ones that had been struggling for a long time now. These digital currencies had barely managed to stay above their given margin and we’re dipping constantly below it, since the last week.

The major downfall of the cryptocurrency market

However, in the last 24 hours,  digital currencies such as Bitcoin and Ethereum had been trading at an all-time low, which they had been doing for a few days straight. With the crash they experienced in the past few months, it has been quite difficult for them to revive from the shock and emerge out as profitable. For example, the market capitalization of the digital currency such s Bitcoin has dipped from 1.27 trillion to as low as 377 billion today.

The Ethereum had also fallen from the heights of 127 billion dollars to somewhat 1068, which summed up to be a 6.7% decline in the past 24 hours. It also witnessed a 78.4% decline from the all-time high it was living through.  A huge number of shareholders and investors were affected as a result of this fall and were liquidated as well. As much as 180 million dollars have yet been liquidated so far after the crash of the digital currency market.

What are the risks faced by the digital currency market?

There are various reasons which led to the tragic fall of the cryptocurrency market. Some of the reasons include the withdrawal of traders’ support, the pressure from miners to sell the crypto as well as high expectations for its value, which led to the downfall. The crypto market is a highly risky as well as uncertain market. The investment or attention a certain cryptocurrency receives is based on the popular opinion of the people.

When people predict that the value is going to fall, the value of the crypto automatically falls as people fail to invest in it, based on the given assumptions that float around in the market. This constant downfall of the cryptocurrency has also forced or propelled the miners into a state of confusion and has made them offload their holdings to pay for the operational costs.

Even though various steps are being taken and various ways are being devised to save crypto from further decline, nothing has worked so far. Even the future meetings that are scheduled to be held to discuss the state of certain cryptocurrencies, may also lead to or pose threats or risks to the existing crypto assets as well.