Present time Bitcoin crash and complete crypto market is in turbulent condition. Actually Bitcoin hits $17K in last 24 hours since the timing of writing this article. Some investors taking it as a good opportunity for investment. While other immature and small investors are facing huge loss.
Today we will discuss why Bitcoin price is crashing. Also, we will bring some urgent points for survival in this type of situation.
2 Biggest Reason For Bitcoin Crash
Here are the two biggest reason for Bitcoin crash. I will discuss all these in detail and simple words.
FED or Federal Reserve Increased Interest Rate is the primary reason for Bitcoin crash. Actually, increased interest rates affect the budget of middle class man. Most of the investors are investing to earn a little bit profit from their investment.
But when we see FED is increasing interest rate it is directly impacting the budget of investors.
In the upcoming inflation, people have to pay their savings for increased tax. So, people looking for the alternative option and that is only square off their Bitcoin holding.
When people will not earn from crypto and Bitcoin, they will not pay heavy tax.
On the other hand when many people sell Bitcoin, and buyers loose interest, price drop accordingly. Actually, it is completely based on demand and supply. Bloomberg and CNBD like website also suggesting to be safe in such turbulent market situation.
FTX Balance Sheet Issue
Currently, FTX exchange is also, facing the bankrupt situation. FTX officials explain that someone transferred their funds to the cold storage or offline wallet. Which is un trackable.
Actually, online movement can be tracked but when someone steal fund and transfer to any offline wallet or cold storage wallet, it become difficult to trace that fund.
In FTX cases something similar to unauthorized fund transfer happened. So, they fail to submit their final balance sheet.
Actually, FTX is the most trustable crypto exchange, that facilitate to trade stocks along with crypto assets.
As per the information received from source FTX is under $600M debt. They were dealing with Binance exchange to buy their business. Binance exchange was ready to buy their non us business. But suddenly Binance exchange reject their deal and market crashed very badly.
So, these were two biggest reason for Bitcoin crash. I hope you understand these clearly. If you have something else regarding this please leave us a gentle comment and we will discuss accordingly.