Why the Crypto Market is Falling: Top 10 Cryptos You Can Mine

by | Jan 25, 2023 | Market, Top 10 Cryptocurrencies | 0 comments

The worldwide cryptocurrency market has dropped from $1.02 trillion to $983.72 billion, an 11% drop since Monday, according to CoinMarketCap. All of the major cryptocurrencies have recently been trading in the red, putting long-term investors to the test. Every cause of the large bitcoin market slump is listed here.

Luna-Terra disaster

Everything started after the Luna-Terra fiasco. It was a severe issue that affected both its investors and the wider crypto industry. There are numerous stablecoins on the market, including Binance USD (BUSD), USD Coin (USDC), and Tether, to name a few (USDT).

The central bank issues three of the aforementioned stablecoins, which are linked to the USD. These organisations have a dollar fund that backs each coin to $1 in cash reserves or commercial papers/receivables. When Luna lost 99.9% of its value, Terraform Labs (the company behind Terra) created a scheme to sell all of its Bitcoin reserves in order to reset the peg to $1, but it ultimately failed. As a result, the cryptocurrency market lost more than $40 billion.

The stock market

The stock market and the cryptocurrency market are intertwined. The cryptocurrency market is on a downward trajectory, comparable to the stock market. The same dynamics that influence the stock market also influence cryptocurrency prices.

Rise in interest rates

The Federal Reserve of the United States has agreed to boost interest rates in order to combat inflation. According to a Wall Street Journal report, the Fed will implement an aggressive plan to boost debt interest rates, limit spending, and control record-high inflation. The aggressive increase in interest rates is generally regarded as a leading recession indicator.

Celsius Network, a decentralised finance startup, announced on Sunday that it is banning all bitcoin transactions due to “extreme market conditions.” During the big sell-off that followed the shutdown, all cryptos dropped.

Regulatory obstacles

In 2022, cryptocurrency had a difficult year. The bitcoin market fell in January before rebounding in February. Governments throughout the world have been closely monitoring the global crypto market as they strive to regulate cryptocurrencies.

Which Digital currencies will endure?

The top twenty most often traded cryptocurrencies are a good place to start. If and when a crash in bitcoin markets does occur, it is simple enough to identify some notable survivors in this listing. The original cryptocurrency, Bitcoin, is quickly becoming a store of wealth. Its blockchain and software have given rise to offshoots such as Bitcoin and Litecoin Cash.Both aim to be the most popular cryptocurrency for daily transactions. Decentralised applications, or Dapps, on the Ethereum network are responsible for a number of tokens like Populous and are quickly gaining popularity.

Others, like Dash, have staked similar claims and carved out niches in industrialised economies like Spain and emerging ones like Zimbabwe. NEO might end up being the underdog. In order to expand the cryptocurrency ecosystem in China, it is focused on the smart economy and closely collaborating with the Chinese government.

Additionally, it has collaborated with organisations including Japan’s Ministry of Economy and Microsoft China. However, moving down the list reveals which cryptocurrencies require more risk tolerance from investors. For instance, the recently popular cryptocurrency TRON lacks a working product and has a very inexperienced inventor.

Similar to how Request Network describes itself as the future of commerce, the company recently changed its original plan to become an online money transfer aggregation service. The white paper for the cryptocurrency describes a variety of applications for its coin, including the Internet of Things, online payments, and the implementation of business logic for governmental regulations. However, the startup has very little to offer in terms of affiliations or prior work in such fields.