Why did Filecoin futures rise (Why did Filecoin recently fall continuously)?

08/11/2023 01:26 • Tech Ticker • 99 views

Why did Filecoin futures rise? In a recent article, we analyzed that Filecoin would be a hot topic in the first half of this year.

First of all, there is a certain correlation between the futures price of Filecoin and Bitcoin (image from the cryptocurrency circle). However, this does not mean that it will not rise so quickly, because the price of Bitcoin has not yet reached its previous high point. Another question is whether there will be demand for Filecoin when it goes online. If there is not enough demand to support the market for Bitcoin, then the price will fall. So many people are asking why this is the case?

1. Why did Filecoin futures rise?

2. Why did Filecoin continue to rise?

3. When can Filecoin start trading?

4. Why did Filecoin continue to rise?

5. What are the reasons?1. Miners choose to purchase tokens with lower computing power in order to obtain more rewards or hope to earn more mined coins through this method. However, they are unwilling to invest all their funds in the market to sell their tokens.2. Recently, Filecoin has attracted a large number of new users, and some investors consider this as a new profit model and hope to profit from it. When these people come in, they will find that the threshold for newcomers is very high, and some people will feel that they have lost money when they are forced to get off the bus; others will try various ways to persuade others to buy coins and make money.

Why did Filecoin recently fall continuously?

Recently, the price of Filecoin has dropped from a high of $3 to the current low of $2, which is very different from the previous price trend. In the past few hours, we have seen many investors start to sell their tokens and storage space.

However, when we look back at the situation in the past few days, we find that as the market demand and demand for FIL increase, more and more miners are depositing their tokens into this project, which has caused Filecoin (FIL) to show a continuous downward trend recently. According to the statistics of the Filfox browser at the time of writing, the total effective computing power of the network is 1.409 million Filecoin; if calculated based on the current price, it is about 600 million yuan. So what is the reason for this high level?1. Because there is nothing else to support its value, this situation will occur: – Due to some traders’ unwillingness to sell, these clients often choose to sell rather than buy, but this may also cause a problem: many people still cannot hold the assets they pledge.2. When exchanges provide liquidity to meet user demand, a novel product or service will be generated. This practice is not practical for users who want to earn interest through trading, and may even cause huge losses, thereby triggering systemic risks.3. “Insufficient funds” has always been regarded as an investment behavior, and now is the time for people to buy it. In fact, many people are not aware of this and just say that “the money in the wallet has been lost.” In fact, there are many reasons for this—for example, the liquidity provided by the exchange is not sufficient, so traders can only use the money they can own for payment or trading operations. In addition, some people directly convert the currency between exchanges, making cryptocurrencies easier to circulate.4. In order to attract more users to experience it, exchanges usually do not charge fees to retail investors, but allow more users to join.5. Most investors use centralized exchanges as counterparties for Bitcoin transactions on the platform.According to data from the analysis company CryptoQuant of bitinfocharts, since October 2020, the inflow of Bitcoin into major global cryptocurrency exchanges has dropped to a level below 2018, which is one of the largest outflows this year. Top exchanges including Huobi and OKEx did not show significant increases in holdings.

This article and pictures are from the Internet and do not represent SipPop's position. If you infringe, please contact us to delete:https://www.sippop.com/23093.htm

It is strongly recommended that you study, review, analyze and verify the content independently, use the relevant data and content carefully, and bear all risks arising therefrom.

Why did Filecoin futures rise (Why did Filecoin recently fall continuously)?

Why did Filecoin recently fall continuously?

Related recommendations