Epic Crash of BitTorrent : The BitTorrent token‘s value has dropped significantly in recent months. Previously viewed as one of the most promising crypto projects globally, the continuing slump of the BitTorrent token has left investors puzzled.
In the past we published an article will bittorrent coin reach $1 however looking at the market trends its not going to happen in the short term.
This article will discuss some factors behind the recent drop in the value of the BitTorrent token. Additionally, we will provide a short-term and long-term forecast for this project. However, let us first consider the price history of the BTT token since the turn of this year.
The BTT token has been on a downtrend since this year. This downward pattern originally began in September 2021, and it has continued well into 2022. According to the leading crypto data platform, Coinmarketcap, the BTT token was valued at around 0.005 in September 2021.
However, the token has continued to experience a significant downtrend, with the token price now within the $0.000001108 price range.
This slump shows a significant drop in value and raises concerns regarding the long-term prospects of the token. In the following section, we will consider some reasons behind the fall of this digital asset.
BitTorrent coin news : Factors Behind Crash of BitTorrent
There are several reasons behind the BitTorrent token price slump. Let us consider a few of these factors.
Crash of BitTorrent : Effects of Slump In Bitcoin Price Value
Bitcoin is the first and most important digital currency in the crypto markets. As a result, a drop in its value will generally lead to a meltdown in the crypto markets. Since the turn of this year, Bitcoin has undergone numerous dips in value.
This has resulted in a general meltdown for many other digital assets. For example, on January 22, 2022, Bitcoin’s price dropped below $34,000, marking a six-month low for the token. Before this drop in value, Bitcoin was valued at $41,000 during the previous month.
The January drop in value saw other crypto assets suffer significant losses in value. The BTT token dropped from $0.0000030 on January 18, 2022, to $0.0000020 by January 22, 2022. Like many other digital assets, the BTT token did not recover from this price crash, and it has continued to drop in value since January.
Apart from its price slump in January, Bitcoin also saw a massive drop in its value over the past week. This price crash is solely due to the fall of LUNA and TerraUSD (UST) stablecoin. However, we will talk more about this later in the article.
Occasioned by the fall of the UST stablecoin and LUNA, panic in the crypto markets led to the crash of the leading crypto asset, Bitcoin. Bitcoin briefly dropped to $28,000 within the past week after reaching over $40,000 in March 2022. Bitcoin price has not touched the $28,000 price range since July 2021.
This event led to the crash in the price of most other digital assets in the markets, including the BTT token. On May 5, 2022, The BTT token was valued at $0.0000018. However, due to the general crash in the crypto markets, the BitTorrent token price slumped to $0.00000099
Like many other cryptocurrencies, BTT has increased in value. However, its current token price is still far from its previous price levels.
The global crypto market has suffered significant losses due to the crash of the LUNA and UST stablecoin. UST stablecoin ranked third among stablecoins in the crypto market before its crash.
Additionally, this digital asset was ranked among the top 10 cryptocurrencies on the Coinmarketcap website. As a result, its crash is expected to have a profound effect on the price value of other crypto assets, including the BTT token.
Since stablecoins are directly tied to the value of a fiat currency, UST tokens are tethered to the US dollar value. As a result, each UST token is supposed to be worth one dollar.
Several unforeseen factors led to the UST token’s value dropping below 90 cents for a prolonged period. The result was a loss of faith in the project and a massive sell-off of the LUNA token and the UST stablecoin.
At the time of the crash, the Luna Foundation Guard a platform responsible for the Terra project, released over $1.2 billion worth of Bitcoin to salvage the project. The platform also purchased $700 million worth of Bitcoin to protect the value of its assets.
However, all of these actions had little effect as the price of this digital token came crashing down.
Crash of BitTorrent : Lack OF Confidence
Crypto assets usually gain value mainly because traders are confident in the market. On the other hand, most crypto assets will slump in value when doubts or fears about government policies or other aspects of a crypto project.
Apart from the current panic in the markets due to the crash of the TerraUSD stablecoin, many crypto investors also hold doubts about upcoming policies and laws proposed by financial regulators in different countries.
These regulations are intended to guide the conduct of platforms and investors within the crypto markets. However, many traders expect to see unfavorable laws enacted to regulate the crypto space.
As a result, many crypto traders have refrained from investing in the crypto space. Many other investors are pulling out their funds to avoid being caught by unfavorable laws.
Countries like Germany, China, India, the United States, and the United Kingdom are already developing policies and laws for controlling the crypto space. However, the crypto markets are experiencing uncertainty due to perceived delays by regulators.
This factor has been a major reason behind a lack of investment into the markets during Q1 2022. When combined with the recent crashes of established projects, investor confidence is low.
Careful consideration of the combined market cap of the global crypto markets proves this point. Global crypto market capitalization surpassed $2.2 trillion in January 2022. The global crypto market cap has contracted to $1.42 trillion, according to data from the Coinmarketcap website.
Crash of BitTorrent : Lack Of Use Cases
The BTT token serves as the utility token for the BitTorrent protocol. On this platform, it serves as a reward for network validators on the protocol. Also, this token is used for paying gas fees.
Furthermore, BTT holders can stake the token to earn rewards. Additionally, it is necessary to vote on the platform. Finally, users must hold a specific amount of BTT tokens to become a network validator on the BitTorrent chain ecosystem.
Apart from the use cases stated above, the BTT tokens can not be applied in many other situations. This factor is also a significant reason for the token’s continuous slump in value over the past few months.
Our Verdict on the Crash of BitTorrent : Does BTT have a future?
Like many other digital assets in the crypto markets, the BTT token has seen a massive reduction in its price value due to a combination of several factors. These factors include the general crash in the price of most crypto assets and a lack of confidence on the part of crypto investors.
Also, there has been little in the way of innovation to push the value of this token. Additionally, the number of use cases for the BTT token is limited. The BTT token is expected to grow in value over the long run.
However, such assumptions can only occur if there is massive adoption of the BitTorrent in the future. This digital asset is expected to respond to current trends in the crypto markets in the short term.