Since hitting an all-time high in the latter part of last year 2021 November., the value of bitcoin and many other cryptocurrencies has been falling.
in November 2021 bitcoin was valued at69 000.but currently it is around twenty twothousand dollars
Ethereum has decreased by roughly 80% since its high.
For the first time since January 2021, the total market value of cryptocurrencies has fallen below $1 trillion.
what causes cryptocurrency crashes?Numerous factors cause cryptocurrency crashes
According to observers, the present crash is simultaneous to the decline in the value of equities and other assets.
this is a result of the stringent monetary policies implemented by central banks to combat inflation.
There is less money available to be spent on assets like cryptocurrencies when these banks reduce the capital accessible in the market with high interest rates.
Several actions have also been made by numerous nations to prevent the widespread usage of cryptocurrencies.
India, are attempting to aggressively tax and regulate cryptocurrencies. In budget, government put a 30 tax on all virtual digital assets. China and Russia have openly banned cryptocurrencies.
Whenever a market crashes, there is a lot of panic selling of the assets, and the crypto market is no different. Cryptocurrencies have intrinsically experienced a lot of swings.
Many cryptocurrency fans have previously benefited from similar purchases because they think that, like gold, crypto assets provide protection against price inflation.
Investors assume that over time, an asset's price tends to move in the direction of its intrinsic or true value, while detractors contend that this is not always the case.