Reason Behind the crashing cripto market.
Bitcoin and many other cryptocurrencies have been crashing they hit and all time high lost late last year. Bitcoin has lost more than two thirds of its value says it heat a peak of around $69000 in November last year and and is currently trading at around the $22000 mark. Etherium, another cryptocurrency popular among investors, has lost almost 80% from its peak . As a result, As a result, the As a result, the overall Market capitalization of cryptocurrencies has dropped under $1000 trillion for the first time Since January 2021.The crash which shows no signs of reversal yet, seems to have led to a drop in investor enthusiasm with trading values in Indian cryptocurrency Exchange dropping by 90% from their peak.
Why are cryptocurrencies crashing?
It may not be possible to pinpoint the exact reason why investors are fleeing cryptocurrencies at the moment. most analyst believe that the fall in the price of cryptocurrencies is in the line with the fall in the price of stocks and other Assets of Central Bank such as The US Federal Reserve Titan monitory policy to fight price rise. as a central banks withdrawal liquidity from the market there is less money chasing assets which in turn causes the prices of assets to drop. Others believe that the crash could also mark the popping of the bubble the that has driven the prices of cryptocurrencies to stratospheric levels.