Presently, the cryptocurrency market is reeling from the aftermath of a mighty crash in prices and loss in value. The recurrent aftershocks and further drop in prices have been exacerbating the market situation and investor sentiment. As a result, the total capitalisation of the crypto market has fallen from $2.9 trillion at its peak to $914 billion. But there are several reasons that could have potentially contributed to the crypto crash. Read ahead to find out.
Market trends may come and go, but one thing that remains constant is that everything works in cycles. Only the duration of the different phases of the cycle may vary. What goes around does indeed come around, and crypto investments are no exception to this rule.
Having witnessed a seemingly ceaseless rally in 2021 that boosted investor sentiment and trade volumes, crypto investments are now on a persistent downward spiral. A majority of cryptocurrencies have lost 68% to 90% of their value when compared to their peak values, and the year-on-year declines have not painted a rosy picture either.
Counted amongst the most prominent of all cryptocurrencies, Bitcoin has notably lost a significant chunk of its value over the past eight months. In November 2021, Bitcoin had risen...