Prices #BTC and #Altcoins! are heavily influenced by global events, economic factors, and market sentiments. Here are some key points that have affected the crypto market:
- Macroeconomic events: For example, changes in interest rates by the U.S. Federal Reserve often cause price fluctuations. When rates rise, investors tend to move to more stable assets, reducing demand for cryptocurrencies.
- Regulatory decisions: Bans or restrictions on cryptocurrencies in major countries, such as China, have led to sharp price declines. At the same time, legalization and acceptance of cryptocurrencies, for example, in El Salvador, have contributed to the growth of Bitcoin.
- Technological upgrades: The implementation of new technologies, such as the Ethereum upgrade (The Merge), often triggers price increases for altcoins, as investors anticipate improvements in the network and its efficiency.
- Cryptocurrency crises: The collapse of major exchanges or projects, such as FTX or Terra (LUNA), led to mass sell-offs and price declines across the market.
- Institutional investments: When major companies, such as Tesla or MicroStrategy, purchased Bitcoin, it resulted in price increases as the market perceived this as a sign of confidence in cryptocurrencies.
