There have been a lot of speculations in the trading market, especially after the financial crisis. This is mainly because of the immediate and unexpected changes that this crisis brought in and caused to this trading market. Here it is important to be noted that when the market takes a big hit, it would also have an impact on the traders who are a very important part of it, probably the major part of it is them who make trades possible here and they are the very reason for the existence and functioning of the trading market. So now it becomes important to discuss even the factors and effects that would affect these traders apart from discussing how and what has affected the market alone. So here is a brief about how it affected the traders on the bitcoin trader and this holds good and great for all the other reliable systems too.
Post financial crisis
This crunch can happen at any time and nobody can time this for there are a lot of things that influence this and cause this to happen. So more than discussing how this would have happened, it becomes important to discuss the effects that it has brought with it which would be more meaningful.
- Lowering demand – it is natural for any trader to stay away from trading, any financial sector for that matter, especially after the economy has suffered a massive change. The major reason for this is nothing but the fear of losing money. The very reason for anybody to get into the trading field is just to make some extra money but when there is a fear of losing the initial deposit money, there is definitely this question of proceeding further in the trading field. So this has ultimately lowered the demand for trading, tradeable assets and also trading profits.
- Crunchy market – the crunch in the financial status would also crunch the trading field and other financial sources and sectors. This is a little dependent on the above factor. When the demand for trading comes down, there is naturally a decrease in the expansion of the market. What is the use of market getting expanded with more opportunities and offers when there are absolutely no traders ready to take them up and utilize them. so the market also starts shrinking in size.
But this situation will not continue forever and there would definitely be a time when the market would develop, improve and strengthen making all its dependants stronger too.