Top 5 Reasons Why Is Crypto Crashing Again? The Secrets Exposed

About Cryptocurrency Crashing:

As we are all familiar with digital currencies and their technologies. So, it is a must for us to find out the reasons why is crypto crashing again?

Cryptocurrency is a type of decentralised digital currency which is designed to be used over the internet.

It is a medium of digital currency exchange through a complex network that is called Blockchain technology.

Nowadays, The cryptocurrency market has crashed so cryptocurrency crashing is a familiar term for all crypto investors.

In this article, we are going to find out the major reasons why is crypto crashing down?

Related article: Top 10 best crypto research tools

Why Is Crypto Crashing Again?

The cryptocurrency market has crashed so the cryptocurrency crashing is continuous to the new low level of the market.

Bitcoin and Ethereum crypto coins were affected badly by the cryptocurrency crashing and the rest of the other coins crashed.

Bitcoin is the world’s largest cryptocurrency ever, that drops around 60% this year which was continuously dropping for 18 months.

The second largest example of cryptocurrency crashing is Ethereum and it has slowed down up to 25% these figures affected the crypto market.

Eventually, the crypto market crashed very badly.

The everyday graph for ETH-BTC has broken underneath the diving channel design and fallen below its past support.

While altcoins have generally failed to meet expectations of Bitcoin, this time they have an additional strain of possible administrative barriers.

A report by CoinDesk noted an experienced saying that few altcoins are probably going to endure such market developments.

According to the CoinMarket Cap, the global crypto market has dropped from $1.02 trillion to $983.72 million in the past few days.

We have seen why is crypto crashing but we have to find out the reasons for cryptocurrency crashing.

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Top 5 Reasons Why Is Crypto Crashing Again?

1. The Equity Market:

The crypto market is connected with the equity market. If the equity market goes down then it also affects the crypto market and the crypto market falls.

Why is crypto crashing

As we all know the downtrends in the equity market, the same has been observed in cryptocurrency also.

At the end of 2021 and the beginning of the year, 2022 cryptocurrency prices rose and fell according to the stock market.

Many other factors are also responsible for the cryptocurrency crash.

2. Decentralised Finance:

Celsius Network, decentralised finance has announced that it is going to freeze the crypto transactions by observing the extreme market conditions.

The reason for the announcement and for deciding to freeze the crypto transactions was to stabilise the liquidity and operations to secure our assets.

3. Downtrend Of Bitcoin:

The topmost cryptocurrency has fallen below the level of $20000 and it is not recovered yet.

As bitcoin falls, the price of top currencies of global crypto was fallen.

The BTC analysis found an unexpected and unheard-of till now. This is considered one of the manor reasons behind cryptocurrency crashing.

4. Hike In Interest Rates:

The government has decided to increase the rate of interest in a time of inflation.

The aggressive rise in the interest rates is viewed as an indication of recession.

This news negatively impacts the market so the cryptocurrency crashed after the increased rate of interest by the Government.

5. Luna-Terra Coin Crash:

The Luna-Terra coin was considered one of the stable coins and people have invested their savings in the Luna-Terra coin.

The Terra coin unexpectedly crashed and its market capitalisation was approximate over $18 billion before crashing.

Therefore many investors lost their entire savings invested in the Luna-Terra coin.

The early investors of the cryptocurrency market have become familiar with the history of harsh volatility.

Analysts observed that people are moving their money towards safe securities in Government banking sectors rather than buying a cryptocurrency. That’s why cryptocurrency is crashing day by day.


Q1. What gives rise to virtual currency?
Virtual currencies are the unregulated digital currencies that issued by Private organisations or the group of developers

Q2. What Is De-Fi Ecosystem?
Decentralised Finance (De-Fi) is a virtual financial ecosystem developed for exchanges of crypto (digital) currencies. This ecosystem is considered one of the safe and secured systems for virtual transactions.

Q3. How much do Bitcoins cost?
Bitcoin is a digital currency whose prices are fluctuating on daily basis. The current price of Bitcoin is 17,07,912.35 INR and for the UK, it is $21388.70

Q4. What is CoinDesk?
It is a special website that provides information about digital currencies such as Bitcoin, Ethereum, Altcoin etc.

Q5. What is a Blockchain network?
A Blockchain is a digital technology that helps to store and transfer the transaction details of digital currencies. It is a Decentralised network system.

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