Why is the Crypto Market Down Today?

The cryptocurrency market is driven by the same demand and supply factors as any other market. Simple economic rules work here - when an asset is attractive for investors, they buy it, increasing its demand and reducing supply (if they hold assets long-term). If the asset is not valuable for investors, they ignore it, so supply is bigger than demand, which means the crypto coin price does not grow.

The cryptocurrency prices down trend that started in spring 2022 had the following precondition:

• Looming global crisis
• Full-scale war
• Difficult situation with economic in the world
• Not favorable news background
• FED’s increased rates
• temporal Binance’s blocking of crypto withdrawals.

All these factors decreased the demand for digital assets, and when the collapse started, people began to massively withdraw funds from the crypto market, pulling crypto down further and further.

What To Expect After crypto price crash?

It is essential to understand that every time the market trends replace one another. It is the reason why the downtrend is the time when investors look for good crypto assets to buy. The essence of long-term investments is to receive assets at a low price and gain a huge profit in a while when the price increases. When the bull trend starts, asset rates will start growing rapidly, people will be interested in buying them, supply will decrease, and demand - grow. Note that when prices grow, they experience a correction, rolling back to the previous levels from time to time. So if you buy crypto when its price grows, you risk losing funds during the price correction. So better think about investments today and plan them long-term.

To learn about up-and-coming crypto projects with good growth prospects, visit the WhiteBIT blog. It publishes many helpful guides, articles, and coin reviews that will be interesting for a trader. If you want to buy digital coins, feel free to register on the WhiteBIT exchange and start your journey to the crypto world.