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This is Why Retail Traders Are Cashing Out, While A Country is Buying the Dip

Written by: Sahana Vibhute

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Sahana Vibhute

A passionate cryptocurrency and blockchain author qualified to cover every event in the crypto space. Researching minute occurrences and bringing new insights lie within the prime focus of my task.

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Jan 22, 2022

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Highlights

    Crypto markets and the stock markets continue to fall the second consecutive day, showing no signs of a strong recovery

    While the restrictions and regulations are expected to get more stringent, no more money may flow into the market later

The stock market is crashing and so the crypto is, no matter whether people accept it or not, both tend to go hand-in-hand. Recently, the crypto market slashed with the announcement of the FED all set to increase the interest rates. The main reason behind the decision is cited to be the surge in the inflation rates.

And hence the people might have realized the drop in their buying & investing power. Moreover, if the balance sheet of the FED keeps on dropping, no more money may flow in the crypto space or the stock market. 

Inflation in the US has peaked of let and hence to bring back it to the normal condition, the interest rates are all set to be hiked. This usually is followed most of the time, but this time, with the move not only a person, probably an entire nation is being benefitted. While the US keeps on squeezing money from its citizens, El Salvador is gearing up to strengthen its economy. 

On the other hand, as per some reports, Biden’s administration is questioned by many and the approach appears to be not realistic. The approval rate, which is a sign that the government needs to tackle inflation, is said to be dipping constantly with an increase in a dis-approval rate. And hence a delay in this process may reduce the trust of the government with depleted public support. 

And hence with the upcoming days being more uncertain, people tend to cash out all their holdings to accumulate more money. Hence in the upcoming days, the number of people buying stocks or cryptos may decline. And if even the people want to enter the crypto space, they may do so when the bull run has already begun instead of buying at the dip!

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Sahana Vibhute

A passionate cryptocurrency and blockchain author qualified to cover every event in the crypto space. Researching minute occurrences and bringing new insights lie within the prime focus of my task.

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