The effects of a changing world economy have a transcendental impact on the value of Bitcoin Code and Ethereum, among many other cryptocurrencies.
How they have tried to dissipate the situation by increasing interest rates has not contributed to the development of the digital market. However, this is not the only aspect that worries investors since a war in full swing has not been a significant aspect that improves the situation either.
Over the month, Bitcoin has reached the lowest floor levels since February 2021, which caused a great commotion. There is a great expectation about the forecasts many specialists made last year where Bitcoin would reach 100,000 dollars per unit. Several aspects and metrics can help us understand the development of digital currencies and how to value the drastic falls they have had.
What does the trading volume of cryptocurrencies refer to?
The trading volume is one of the methods by which the performance of a specific digital currency can be evaluated. The main aspects to consider are the popularity among its users and the actual price they have. Through this indicator, we can determine the number of digital currencies that have been traded in a given time; there are exchange platforms that allow you to view this value every 24 hours like others to seven days.
This indicator is closely related to liquidity, so by evaluating the trading volume of a cryptocurrency, we can determine its positioning and even its performance among its users. Currently, Bitcoin has a trading volume of around 20 billion dollars. At the same time, Ethereum, which is positioned in second place, is approximately 14 billion dollars. Both values are significant despite their fall, but which are a fundamental part of the execution of investments; that is, investors at the time of carrying out their analysis and choosing the digital currency of their choice must evaluate these concepts.
The financial fight is not only of the banking entities and some stock market actions; also, the crypto assets face the urgent need to increase their prices.
Crypto Asset Industry Falls alongside Bitcoin
The relentless decline of digital currencies is currently dragging down the investors who have invested their capital in these prestigious digital currencies and the
technology companies listed on the stock market. Many of the exchange platforms that base their operations on the purchase and sale of crypto assets have been significantly affected since the valuation of cryptocurrencies has decreased by almost 1.5 million dollars compared to the historical maximum of November 2021.
The two companies that have been most affected by these drops in Bitcoin and Ethereum are Coinbase and MicroStrategy. These two large corporations base their operations on trading digital assets. Many investors pouring their capital into crypto investments have practically run away, and this decision has radically affected the share of both companies in the stock market. The investments made by the members of these companies exceed 5,000 million dollars, a significant sum which they do not expect to get rid of since they indicate that for now, as in any market, there are ups and downs, so when cryptocurrencies recover, your investment will be even higher. On the other hand, the crypto active mining sector has also been affected since by not generating digital currencies; the mining farms are inactive, which represents a loss in their shares for the enormous mining equipment companies.
The cryptocurrency ecosystem has been highly affected by the control measures of the traditional economy. However, it has fallen to deficient levels; it is still possible that it is only a transitory phase. Many are waiting for future changes in digital currencies; these have shown that their decentralization makes them strong, even keeping fighting not to fall lower.
Conclusion
All financial markets go through economic turbulence impacting society and investments. However, for many, falls also usually represent positive aspects; there is no doubt that this situation has been complex for crypto assets. It only remains to wait for the digital financial market to demonstrate its capabilities by stabilizing this market that has managed to position itself among many users. Its support is what keeps it active in this market.