What led to the disappearance of $ 500 billion from the global cryptocurrency market?

 The fall of the crypto market, which overturned the prevailing emotions, was caused by various factors.

 The new variant of COVID, Omicron, is the main reason for the fall, as it caused great fear in the market and the stock markets. However, market analysts also blame the exchange's leveraged positions and the funding rates (interest rate + premium on futures contracts). 

Crypto-currency funding rates have once again become hostile, and many believe it is a bullish sign, even when most of the market is painted red.

Similarly, regulatory pressures in the US and calls for stricter policies in the crypto market (especially stablecoins) have played a decline. Congress will hold a hearing on December 8, where CEOs from top exchanges such as Coinbase, FTX, and others will testify and try to reverse the pressure.

What will be the next day?

After a highly bullish October, crypto experts have predicted a bullish last quarter; however, the beginning of December shows the opposite. 

The Index of Fear and Greed for Bitcoin has fallen to "Extreme Fear" after a month and a half. Although the crypto market is declining, analysts believe we have yet to reach the top.

Plan B.

Plan b is a famous crypto analyst with a Bitcoin price forecast of 100,000; he posted a chart from the 2017 bull run on his Twitter account to indicate that the crypto market would absorb the downturn.

For context, 2017 bull market pic.twitter.com/W16gCwTVve

— PlanB (@100trillionUSD) December 4, 2021 

This article is for informational purposes only and does not replace specialized consulting services with professional experts.

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