This year has not been the best year for Grow Your Business; the digital financial market is being affected on a considerable scale, which for many investors is dangerous.
A somewhat revolutionized digital market
Financial institutions have strongly affected the cryptocurrency market. As a result, the FED has begun issuing its positions through annual and quarterly statements.
There is no doubt about the intense criticism that the digital market and digital currencies have received since they were created since they represent investments with a high volatility margin.
According to various sources of information, the amounts that are handled are around 205 billion dollars of losses in just one day, with the falls that the different digital currencies of the cryptographic market have suffered.
A considerable sum represents the greatest fear of individuals and minority investors who have little capital and still decide to invest in cryptocurrencies, something that, for many, is truly a real risk.
The percentages of decrease in value of cryptocurrencies are even disappearing the gains that could be obtained for the exact date, but in 2021, where BITCOIN is between 15 and 17% decrease in its value.
While on the other hand, Ethereum and Solana have significantly decreased their market capitalization by between 25 and 30%.
What is attributed to the fall of the crypto market?
The digital currencies are registering values that could even be considered the lowest since 2021 when we witnessed the fall in July, which was a fall that left many surprised since it was in a significant upward trend.
Due to the extraordinary circumstances that have happened so far this year, the great analysts attribute the decrease in the value of digital currencies mainly to the situation generated between Ukraine and Russia; it can even be considered a measure of discontent on the part of the users.
When war situations occur, the most common way to establish measures that counteract the social and economic effect is through financial limitations usually set by the affected or surrounding areas.
That has not had an effect since cryptocurrencies have served as a FINANCIAL INSTRUMENT to solve everything related to the payments and finances of both countries
Russia has been one of the countries whose measures against cryptocurrencies have been the most radical, even though it is considered one of the countries where the most excellent cryptographic activity takes place in transactions and extractions of digital currencies.
The stock market takes effect at the crypto level.
Both financial markets, traditional and digital, develop independently, but even so, the effects of one of the two can have a mirror effect on the other.
Such is the case of the downward trends that have been registered in the stock market and in the various technological ones that are part of the NASDAQ section of the stock market; the last weeks of April could be considered the worst weeks of the stock market in what covering a financial year.
One of the companies that have suffered the most is Netflix, which has even reached percentages equivalent to 22% in the fall in the total value of its shares, making other technology companies tremble since the markets are constantly transforming.
Investments in digital assets can represent a risk for more than one investor, so they prefer to make investments in assets whose growth may be more promising and stable in such an uncertain scenario.
The scenario may change, hoping that the downward trends are just trending correction events. However, the movement may change, which will take almost half a year for digital currencies.
Small, medium, and large investors still keep their crypto assets protected and waiting for a new era of profitability, where supply and demand are what will define the positioning and value of digital currencies.
Everything indicates that the digital assets that have somehow been stored at a specific time should be sold; this is the eagerness of many traders whose statistics and forecasts are not precisely what they expected.
Conclusions
Let’s analyze the movements and variations in the prices of the assets that make up the digital market. It is common to have downward trends that can last several months, but, in the end, the value of digital currencies always ends up being revalued.