Article by: Roy Balfour De Stadler – RBP (SA)
(Possible Various Scenarios / Factors that can affect Crypto Price Dip)
- The Federal Reserve of the USA has kept interest rates (lending rate) unchanged, while the UK Banks decreased it, therefore making borrowing in the short term not an advantage in the US Lending Market, it is cheaper to borrow abroad than locally, therefore clients with borrowing funds to purchase Crypto, but decided to sell Crypto to cover loss in costs,
- The Trump factor with the DEMs is creating uncertainty, i.e. Trump for Crypto, DEMs not, SEC (securities exchange) under threat by Trump Explaining head of SEC will be fired if he is President, i.e. SEC and Banks don’t like it, therefore SEC and Banks sold lots of volume of Crypto for USD$, to try influence investors’ confidence to break away from Crypto to the Traditional Channels i.e. the Banks,
- The Equity Market (US) fells by 3%, thereby creating a frenzy of panic selling, and because Crypto ETFs (exchange traded funds), give to access to enter the Equity Arena, a lot of selling of ETFs occurred flooding Crypto Market, thereby price declines occurred, (over supply in market)
- The middle east conflict resulted in Crypto been sold for arms due to sanctions, Crypto was sold on decentralized exchanges to pay for armour etc., i.e. avoiding traditional banking payment systems, therefore over sale of Crypto from decentralized Wallets,
- The Whales of big players in the Crypto Market, and can affect the price swings of
Crypto, for e.g., Whales such as Elon Musk, Rothchild’s etc hold large volumes of Crypto Currency and sell off or buy a lot at once to influence an upswing v/s down swing in
prices, because of the decentralized nature of Crypto, and take advantage of price movements, - Fake News, Good News, Bad News etc can affect prices of Crypto, upswings v/s down swings,
- The Three Phase Economy is Banks/Forex + Equity + Crypto = Total Market Cap,
Investors will invest in any economy, to grow their investments and take advantage of any market that will gain a return on their investments ROI (Return on Investment), whether its Crypto, Banks or Equity.
Finally, this is my Prediction, but no prediction is soundproof, that’s why you do your own research in understanding, reading market reports, economist reports, bank reports etc., even reading fake, bad, good news, because you can also gain from a disadvantage situation in the market, and any market is ONLY healthy when you have ups and downs
I am personally a long-term investor because I know the Banks, Industry, Individuals, are becoming more aware of the benefits of Blockchain and Crypto Currency and Digital Assets (NFTs) via RWA (real world asset) structures, the prices what you pay for now are definitely are going to worth a lot more in 3 years and beyond due to demand of a growing acceptance market in Crypto, i.e. confidence thereby pushing up prices, and Crypto is revolutionizing the traditional form of Banking as we know it, which will be bygone era.
Who ever thought BTC (Bitcoin) in 2008 price was ,50c USD$ and now it 57000$ in 2024.
