Steemit Crypto Academy Contest / S1W4 – Reviewing the Instability of the Crypto Market by @thimalteb

Entire question to be answered

• Most of the cryptocurrency market is currently experiencing a sharp decline, especially in recent days. What do you think of this drop? State its causes and how long do you think it will continue in this downtrend?
• Why doesn't this drop in the price of a few coins decrease their trading volume (eg: Bitcoin)? How will they deal with this market instability?
• What is the relationship between the current instability and the downfall of the Terra ecosystem and its Luna currency? Do you think its price will bounce back? If so, tell us how and when?
• Our Steem ecosystem, like most currencies, has been affected by this market downturn, has this caused you as a user some stress? Or are you still confident in this project? Give your opinion, specifying the arguments that support your review

Most of the cryptocurrency market is currently experiencing a sharp decline, especially in recent days. What do you think of this drop? State its causes and how long do you think it will continue in this downtrend?

In recent days we experienced another red zone or a huge bearish trend in the crypto market. Some whales in the crypto market lost their assets at a higher margin while the newbies who didn’t know much about crypto got nothing at the end of the day.
As we all know crypto has a highly volatile market, and basically, no one could predict its future.
So because of this volatile market, even in the past few years, there were many ups and downs too. 2021 is the year when bitcoin hits its highest value ever. But unfortunately, after that many users had to experience these kinds of market ups and downs several times.
I think it is not necessary to be afraid. New users who invest without having proper knowledge had to face a lot of problems by this kind of bearish trend. But those who are here in the crypto market for so long and the users having a good knowledge of crypto, know how to act in this kind of situations.

Causes for the drop
I think there is no exact reason for these kinds of huge bearish trends. I think the following facts may affect them a lot for the market down.

• Some wrong information that is being distributed among the crypto users(mainly among crypto whales) leads the users to leave the market. This leads to a crash crypto market in significant numbers.
• Some countries like China banned cryptocurrencies and they declare all cryptocurrency transactions illegal in their country. So this made a huge impact on the crypto market because there was a large number of crypto in those countries. Not only that but also these kinds of banning will create a huge pressure on the new investors leading them not to invest and on the other hand, making the current investors take out their assets.
• The recent UST, LUNA crash is also another fact that created the crypto market a bearish one because the price of UST & LUNA suddenly dropped drastically. So this also made huge losses to the Terra ecosystem users and the whole crypto market got shocked by this drop.
• I thoroughly believe that the most recent Covid pandemic is also there among, as one of the main causes for this bearish trend in the market because during the peak days of the pandemic, more countries including the developed countries also had to face some economic crises and it also helped to increase the cryptocurrency markets increase of bearish movement.

Will this last for so long??
Volatility in the crypto market is a normal thing. I have been here in this crypto market for so long and experienced so many of the market's ups and downs. From my experience, I believe that this bearish move will not last for so long and it will be bounced back within the next three months. Then the Crypto Whales who left the market will rejoin and they will make this market a bullish one.

Source

Why doesn't this drop in the price of a few coins decrease their trading volume (eg: Bitcoin)? How will they deal with this market instability?
As we already know, currentltly the crypto market is experiencing a huge market drop. So the high ranked coins like Bitcoin has also fallen in its price remarkably low. Currently its value is 30k USD and it is lowest price which hits after 2021.
Though it is experiencing a drop in value,its trading volume( particular asset trading volume for a given period of time) has not affected that much. This is because still the crypto users hold their nerve and hope that holding their assets is the best way rather than selling them. Not only that, meantime, but most of the traders think that there will be a bullish trend appearing soon and therefore holding a high ranked coin would be more stable than holding an Altcoin. So because of these reasons some high ranked coins trading volumes still remains same without any disturbances.

How will they deal with market instability?
Dealing in an unstable market is some kind of an art. If anyone wants to deal during this period,I think first the traders must have an idea about the current situation in the market and keep themselves updated every time. After reviewing and getting some expertize ideas ,buy one or two crypto currencies in order to get high profit when the market hits its resistance level.

Source

What is the relationship between the current instability and the downfall of the Terra ecosystem and its Luna currency? Do you think its price will bounce back? If so, tell us how and when?

We all know that Terra UST, which is in the Terra eco system is ranked in the 10th in the crypto ranks and has a $25billion market capitalization. Not only that, the governance token of Terra network,LUNA is being used to maintain UST value.
When the crypto markets downfall began, the users or the investors started to lose their trust with the Terra network as well. Then the investors started to take out their savings. With this UST and LUNA prices , capitalizations were fallen down drastiacly. 25 $ billion capitalization of UST went down below 2.5 billion in a few days and its price went down more than 75%. LUNA has also lost its price to 0.01$

Can UST & LUNA recover?
People may say that it is really impossible. For UST and LUNA to comeback to its higher prices once again. But according to the top management of Terra ecosystem, they declared the catchup plan to the system.
So I think the Terra team is focusing on recovering this system very quickly and so
I think within 6 months this system will bounce back to its previous positions with no effect.

Source

Our Steem ecosystem, like most currencies, has been affected by this market downturn, has this caused you as a user some stress? Or are you still confident in this project? Give your opinion, specifying the arguments that support your review
Yes, it is true that same as the other crypto currencies, Steem is also having a tough time in the market. It hits 0.18$ recently. But, as according to my three years of experience in crypto market I also had gone through many ups and downs in the market. So I have some kind of a good knowledge about the volatality of the market. Last time when the steem price hit around 0.2$; I invested in steem and within 3 or 4 months I earned a good profit. So because of these reasons I do not have even a small stress due to this current market behavior.
Apart from that, according to the previous crypto academy lectures, the price drops and the market volume indicates us a support level and soon a bearish move will occur. So I invite all who love to invest on steem, please come and invest without any fear. I think Steem is a very good, strong and a powerful platform to invest and this time gives you even more chance of getting a good profit.

I would like to invite @hansihmd and @nethanya45 to participate in this contest.

Thankyou!!!