Good-Guy
VIP Contributor
Cryptocurrency trading has viewed as a great investment for a few years. However, the recent times have not been so good for the cryptocurrency market. In the past Bitcoin reached more than $65,000, but now the market has again dropped to below $40,000 mark. This has been the case with many other coins and tokens as well. Binance Coin has dropped to more that 17 percent, Ethereum has also lost more than $500 in value, and Dogecoin has also lost more than 13 percent of its value in the matter of a day. There are various reasons why the market has crashed.
The first reason is the fear of ban on cryptocurrency by Russia, as it is one of the biggest places where cryptocurrencies are mined. If Russia actually bans cryptocurrencies, then the market will crash even more.
The second reason why the market has crashed in a horrible way is the U.S. Federal Reserve's increase in the rates of interest, as we all know. They have done that to supposedly "combat" inflation and this has led many cryptocurrency investors to pull away investments from the cryptocurrency market.
The third biggest reason why the cryptocurrency market has crashed is because of the liquidation of cryptocurrency assets by the long-term investors in the market. Since the cryptocurrency market is crashing, many long-term investors are pulling away the capital and selling their digital coins.
The first reason is the fear of ban on cryptocurrency by Russia, as it is one of the biggest places where cryptocurrencies are mined. If Russia actually bans cryptocurrencies, then the market will crash even more.
The second reason why the market has crashed in a horrible way is the U.S. Federal Reserve's increase in the rates of interest, as we all know. They have done that to supposedly "combat" inflation and this has led many cryptocurrency investors to pull away investments from the cryptocurrency market.
The third biggest reason why the cryptocurrency market has crashed is because of the liquidation of cryptocurrency assets by the long-term investors in the market. Since the cryptocurrency market is crashing, many long-term investors are pulling away the capital and selling their digital coins.