Do you think the fall of all cryptocurrencies is due to a particular event or is it random? And the $XRP is now abandoned by its fans, will it crash for good?!
Anticipated corrections in the cryptocurrency market are phases of decline that generally follow significant increases.
Here are some elements to better understand this reflection:
Why is a correction expected?
Market cycles:
The crypto market operates in cycles of bull runs (upward) and bear markets (downward).
Historically, after each Bitcoin halving (the last in April 2024), a significant increase is observed, followed by a marked correction.
Overbought and profit-taking:
When prices rise too quickly, many investors sell to secure their gains, creating downward pressure.
Technical indicators like the RSI sometimes show an overbought state, signaling a potential correction.
Anticipation of institutional investors:
Players like BlackRock, Fidelity, or other large institutions participate in the market with strategies based on advanced analyses.
Some analysts, like Arthur Hayes (former CEO of BitMEX), believe that the peak of the current cycle would be reached around March 2025, followed by a sharp correction.
Macroeconomic factors:
Inflation and decisions from central banks, particularly the Fed, influence the price of Bitcoin.
A stricter monetary policy (interest rate hikes) reduces appetite for risky assets like cryptos.
What impact for Bitcoin and altcoins?
Bitcoin could experience a drop of 30 to 50% after its peak.
Altcoins, generally more volatile, could suffer even larger losses.
Macroeconomic factors?
Inflation in the United States?
Trade tensions?
Market predictions?
Anticipated corrections?
Scandals and loss of trust?
Here is an overview of the causes...
