Amid a complex panorama concerning the world economic situation and a warlike conflict that seems increasingly complicated and does not show a prompt solution, it affects the evolution of the Benefit From Bitcoins.
April closes, and a speedy recovery is expected.
At the beginning of April, everything indicated that the activity related to the BUYING AND SELLING OF CRYPTOCURRENCIES would change; showing an upward trend to start what would be the second half of the year on the right foot.
Unfortunately, as the days went by and at the closing date, the trend had an adverse effect; that is, the values of cryptocurrencies continued to decline.
This is a situation that directly affects the needs and emotions of investors since, although long-term investments in digital currencies are consistently profitable, their volatility can work against them and create a different scenario for the finances of their users.
The term used for these sudden drops in the leading cryptocurrency, such as BITCOIN, and on which all eyes are turned when evaluating the global situation of the digital financial market, is speculative fatigue.
This concept refers directly to the feelings that users of cryptocurrencies usually have concerning a certain trend; Bitcoin has unfortunately closed the month of April below 40 thousand dollars per unit of BTC.
For many users, this situation is usually frustrating since, while waiting to be able to take advantage of sure profits, they have had to keep waiting for almost half a year without having any profitability, where the capital is stagnant, waiting for an abrupt and sudden rise that can even last just minutes or hours.
Ups and downs that disappoint many
Bitcoin began in a year, and since then, it has not stopped suffering setbacks where even situations outside the digital market that should not affect the evolution of these digital assets are causing collateral effects such as the decrease in supply and demand for them.
For March, an upward trend was shown that could reach 48 thousand dollars, contributing to an increase in crypto-asset investment expectations in the hope that the trend would continue over time, but unfortunately, it did not.
While waiting for the FED’s statements, everything is subject to the fact that this may again impact the value of cryptocurrencies, even making the value of Bitcoin reach 30,000 dollars per unit or, failing that, increase to 50,000.
Cryptocurrency traders have been alert in the analysis of the development of the digital market, waiting for a correction effect of the trends where if the floor of 38,000 is touched, the falling impact could be reversed and reach a new maximum.
Long-term investors do not suffer the impact in such a radical way; still, day traders are the ones who must even leverage their investments due to the high volatility that digital currencies have shown in the few months to 2022.
It is difficult to predict since cryptocurrencies so far this year have shown a completely different behavior and the socioeconomic situations surrounding them.
So far in May, the financial results of Bitcoin have been much more abrupt since it has reached the barrier of its lowest value so far this year, that is, $34,000.
NASDAQ influences cryptocurrencies
Although many often consider two arches indifferent, it is a reality that when Wall Street technology shares fall, cryptocurrencies usually have the same trend.
In recent weeks, a considerable number of shares of technology companies, even the most important ones listed on the NASDAQ, have had a bearish trajectory that breaks 5%.
Downtrends could have a different effect on cryptocurrencies, causing a large wave of digital currency purchases as they could continue to decline and which is attractive to many.
Volatility, in this case, plays in favor of increasing demand, and that is where everything could change.
The digital financial world is something completely uncertain; nothing is certain, everything indicates that the trends depend entirely on the market and its whims, and the risks continue, but it is a matter of analyzing the right time to invest, not making investment decisions lightly.