Why Did the Crypto Markets Crash?— VAULT Cryptocurrency Blockchain News #38
When you checked your cryptocurrency portfolio this week, you might have cried out, “WHY?”
I wanted to review some possible reasons why we’ve seen such a dramatic downturn in the markets over this past week. The main reasons for the current drop in the crypto markets can be linked to the following 6 factors:
- Russia Central Bank proposal to ban cryptocurrency:
As we’ve seen with China, anytime a major country announces that they plan to ban cryptocurrency, the market tends to dump.
Russia’s central bank stated that it is planning this move to protect its citizens from the risks that cryptocurrencies pose to financial stability and the sovereignty of monetary policy.
Russia granted cryptocurrencies legal status in 2020 but the use of tokens as a form of payment was banned.
The situation in Ukraine is also a concern for many.
2. Federal Reserve threatens to increase interest rates:
The Federal Reserve has announced plans to hike interest rates beginning in March. This is being done to try and slow down inflation, which has currently risen to over 7% so far this year. The weak performance of the economy due to the resurgent Omicron variant has made investors more cautious of stocks and has made bond yields significantly more attractive.
3. Wall Street selloff:
Investors are getting out of riskier investments like cryptocurrencies and equities in tech and growth stocks. The general earnings for most tech stocks have not met projections, which has served to further exacerbate negative feelings in the market.
4. Growing correlation with traditional markets:
Bitcoin has a dramatic correlation with traditional Wall Street markets. Most relate this to growing institutional investment in cryptocurrencies. Bitcoin traditionally has a sell-off when Wall Street suffers a correction. Bitcoin appears to be just another commodity traded and controlled by Wall Street rather than an innovative new financial tool separated from traditional financial markets.
5. Leveraged long positions:
Margin trading has led to massive corrections in crypto markets. Leveraged positions get liquidated and are forced to sell as price falls. This creates a domino effect as prices continue to fall, and more positions are liquidated, and more positions are sold.
In the last 24 hours, over $1.2 billion in long positions were liquidated. Bitcoin led the way at $250 million, followed by Ethereum at $160 million.
6. Competition from new crypto projects:
New forks of Ethereum and Uniswap have generated billions of dollars through sacrifices of cryptocurrencies.
PulseChain, an upcoming fork of Ethereum, raised over $670,000,000 in sacrifices from cryptocurrencies on the Ethereum blockchain alone.
PulseX, an upcoming fork of Uniswap, has raised over $944,228,840 in sacrifices in the form of cryptos on the Ethereum blockchain.
Many of these cryptos have been sold for stable coins. This has created massive sell pressure and lowered the price of many cryptos as funding is generated for these new projects.
VAULT Crypto News This Week
Important!!! For ALL VAULT Platform users signing in with Telegram
We have had a number of past issues with Telegram authentication with users getting a message “Bot domain invalid” preventing login, as this is outside our control we have had to wait until Telegram resolved the issue on their end which would usually be a few hours.
This happened again over 2 days ago and after contacting Telegram we have received no response.
Effective immediately, we are discontinuing the use of Telegram sign in for new registrations on VAULT.Investments platform and all current users registered by Telegram will be migrated over to Discord or Google sign in.
If you currently have an account on VAULT.Investments platform using Telegram, you should have received an email with a link to follow to migrate your account. Read and follow the steps carefully for a smooth migration.
Alternatively all users attempting to login on the platform with Telegram will be directed to the migration process.
Anyone that encounters issues can send a support ticket via the platform
VAULT Coin’s Market Performance This Week
We finished out the week at $3.71, which is down from last week’s price of $4.55. We had a high of $4.59 on Thursday, and our low for the week was $3.71 on Saturday.
We saw an average of $2,292.00 traded daily. This is down slightly from last week’s average daily volume of $2,388.73. This maintains us above the $2,000 daily level.
VAULT’s current price average across all exchanges is 10,625 Satoshi (0.00010625 BTC).
Bitcoin (BTC) Update
So far, 2022 has been a tough year for Bitcoin. As of today, Bitcoin has officially lost 1/2 of its value from its all-time high.
Most of the indicators are signaling that a further drop may be coming.
Is there any hope? Traditionally, February has been a good month for Bitcoin. Over the last 9 years, there were only 2 times that Bitcoin did not go up in value during the month of February.
Always keep in mind my favorite Warren Buffet quote concerning investing.
It has been a long time since there has been this much fear in crypto.
Bitcoin may be losing its grip on the crypto market. Time will tell if Ethereum or another crypto project will knock it off the top of the market cap charts.
Will Bitcoin finally hit $100,000? My opinion is most definitely. The only question is how many years will it take to get there.
Cryptocurrency News This Week
VAULT Crypto Portfolio Tracker
I wanted to give you a running tally of what you could potentially be earning with VAULT. The example I’m using holds 1,000 VAULT, with 0.1 BTC invested in the BTC% program (check it out here).
I wanted to show you what kind of returns you could be earning weekly and cumulatively.
1,000 VAULT initial investment with current value of 1,188.54 VAULT at ~23% ROI generated 5.18 VAULT blockchain rewards this week, for a total of 1,193.72 VAULT over the past 39 weeks if you compounded your daily rewards with 100% reinvest on the VAULT platform. The total dollar value earned is $718.70 at VAULT’s current price of $ 3.71 (0.00010625 BTC). The total Bitcoin value earned at VAULT’s current price is 0.0206 BTC.
Placing 0.1 BTC in the BTC% program earns 11% APR, providing a weekly return of 0.00021089 BTC. Over the last 39 weeks, this would be worth 0.0082 BTC with a current value of $289.17.
The current total value of your potential returns over the past 38 weeks would be $1,007.87 or 0.0288 BTC.
We Are Here to Help You DYOR (Do Your Own Research)
I hope this update on why we are seeing Bitcoin and other cryptocurrencies crash has been helpful.
Consider investing the VAULT way and enjoy a seamless crypto experience!
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This is not financial advice. VAULT Investments provides a service to its clients and is not responsible for projects listed or featured in its platform or ecosystem. The views and opinions in this update are my views alone and are not necessarily those of VAULT investments or its administration. Users should always DYOR. Invest at your own risk.
About the Author:
My Discord handle is Bobtilladhun.
I’m a long-term crypto investor. I bought my first Bitcoin in 2016 for $700. I sold 1/2 my BTC when the price doubled to satisfy my wife that I wasn’t going to lose all our money and made my initial investment back. Since that time, I have used my remaining Bitcoin stack to HODL and invest in interesting projects. I am a founding investor in VAULT and have accumulated a significant number of VAULT coins through holding my coins in CRYO and taking advantage of the compounding interest VAULT provides.
I was asked by Ian and the VAULT team to provide a weekly update on VAULT’s performance and current issues in cryptocurrency.
I hope these updates provide you with a quick overview of what is happening with VAULT and in the world of cryptocurrency.
Please contact me on Discord if you have any comments or suggestions.