Why have cryptocurrencies been declining recently? Don't worry and take your time🫷🏻
The cryptocurrency market has witnessed a wave of declines in recent days, raising concerns among investors and followers. This downturn was not sudden; it came as a result of a set of interrelated factors, which can be simply understood as follows:
- Profit taking after a strong rise
Before this decline, the prices of several cryptocurrencies had risen significantly, prompting many investors to sell what they had to achieve quick profits, which is known as profit taking. This mass selling led to a drop in prices automatically.
- Natural correction in the market
Financial markets generally experience movements of rise and fall known as "corrections," which is a temporary phase where the price declines after a period of strong rise. This is what happened with cryptocurrencies, where prices returned to approach their normal levels.
