- 2023 started great for the crypto industry following the bearish market of 2022.
- Most tokens have been persistently rising. However, the past few days have been tough for crypto.
There are several reasons why the crypto market is suddenly on a bearish trend. Despite this trend, some coins are looking promising. Here is a look at some of the main reasons why the crypto market has turned bearish recently.
This article discusses four reasons for the recent precipitous decline in cryptocurrency prices before highlighting which altcoins are bouncing back and exhibiting strong bullish momentum.
1. SpaceX Sold BTC Holdings
SpaceX, run by CEO Elon Musk, a major crypto proponent, is rumored to have sold a large cache of BTC. Before the rumor started swirling, SpaceX was estimated to hold BTC worth $370 million. The news of their sale caused panic in the crypto market, given Elon Musk’s high-profile status in the crypto world.
Musk’s sale of BTC caused institutional investors to panic, signaling it was time to sell. The result is that crypto prices have fallen drastically in recent days. This caused the Crypto Fear & Greed Index to drop to 37, which is Fear territory.
2. Hawkish Federal Reserve
The Federal Reserve may also have played a role in the collapse of the crypto market prices. It recently released minutes from its FOMC meeting, which signaled that the Fed was still hawkish on its war on inflation. Several Fed Committee members emphasized the need for rate hikes, dashing hopes of a pivot soon.
In such an environment, investors are often quick to cut risky investments, which include crypto, for safer alternatives like treasury bonds and precious metals. Many had hoped that recent inflation numbers would cause the Fed to ease up on rate hikes.
Another cause of panic was recent action taken by the Fed against a bank linked to FTX. This has investors worried due to its perceived aggressive stance on crypto.
3. SEC Ripple Appeal
Ripple recently won a huge case against the SEC, which caused the price of XRP to soar. However, the SEC has decided to appeal the July ruling. Consequently, it has caused panic in the crypto world. While many believe the SEC’s appeal will not hold up, it has still caused fear and panic as investors become wary of the SEC’s aggressive stance towards the crypto sector.
4. Evergrande US Bankruptcy Filing
China’s Evergrande Group, a major property developer, caused panic in the financial markets when it filed for bankruptcy protection in New York. The filing caused investors to begin selling off their riskier investments, as it is a sign of heightened risk in the financial markets. The shock has spread to the crypto market, causing prices to fall.
Which Altcoins Are Bouncing Back?
Amidst the bear market, savvy investors have found opportunities to buy the dip. Here are some altcoins that are resurging amidst the bear market.
BTCX: The Token Space X and Elon Can’t Shake even after Bitcoin Dumping
BTCX Token comes with a hyper-deflationary model, with investors scrambling to get a piece of the action before it is too late. With the crypto markets doing so badly, investing in a hyper-deflationary token has never been more attractive. BTCX Token will allow investors to preserve the value of their investment even during the most turbulent market events.
With its use of the green proof of stake consensus mechanism and low cost per transaction, the BTCX Token token will soon gain mass adoption. It has successfully combined the best features of Bitcoin and eliminated all the downsides. For those lucky enough to get in early, this is the golden opportunity they have been waiting for.
The Hyper Deflationary Model
BTCX Token’s hyper-deflationary nature is achieved through a sophisticated token burn mechanism. A percentage of each transaction is permanently removed from circulation, effectively reducing the total supply over time. This deflationary pressure increases scarcity and is likely to enhance value, drawing interest from both short-term traders and long-term holders.
Despite widespread panic and fear in the crypto market, one token has emerged as a diamond in the rough. Many investors have been looking for an alternative to their recent misfortunes in the crypto market and found it in BTCX Token. BTCX Token is based on renewal and rebirth. Just as Elon Musk recently rebranded to X, BTCX Token aims to rejuvenate the crypto world.
Polkadot Shows Great Resilience
Polkadot has shown massive resilience amidst the bear market. The price of $Dot climbed just over 4% since the start of the crash, making up for some of the losses it had sustained earlier. $DOT has stabilized at around $4.50. Data from CoinGecko also reveals that 76% of crypto investors are bullish on $DOT. While it is still from its all-time high of 2021, the signs of good fortune in the near term are undeniable.
Arbitrum
At the time of writing this, Arbitrum is trading at $1.01. After the initial market scare, which sent its price tumbling, the price of Arbitrum has stabilized, and it is on the rise again. In the past 24 hours, it has made modest gains of 1.39%, likely to grow incrementally in the next few days. Arbitrum appears to be one of the few altcoins defying the general downward trend in the market.
Sei Price Rise by 151% after Listing on Binance
While most crypto coins have seen their prices fall, $SEI has defied the odds and is soaring. Since it was listed on Binance on Tuesday, August 15, 2023, its price has jumped 151%. At its peak, the price had risen over 650% higher than its listing price. While some pullback was expected due to normal market correction, $SEI has proven to be a shining star in these gloomy times.
