Why crypto has crashed? Here are the reasons
Bitcoin price declined to over 40% from its all-time high
As per source coinmarket.com, the cryptocurrency market cap declined to over 12% intraday.
Bitcoin continued the declining trend by trading prices below $39,000 which is even below the support level. The world’s biggest cryptocurrency is on its downstream to over 40% since it witnessed the peak in last year November. Bitcoin has been slipping constantly, 14% since the start of 2022.
And just not Bitcoin, but other cryptocurrencies too are in downfall like- Ether, meme coins, Dogecoin, Solana, Shiba, Binance are on same down track.
Here is the calculation, Ethereum dropped to 12.1%, Binance to 9.9%, Dogecoin to 7%, Shiba to 15.6%(Huge loss), Solana to 12.4%.
Overall, the world’s top 100 digital currencies are trading under the Red flag.
What’s the cause of this crash?
The major cause of this crypto trading downfall has been the proposal of the Russian Central Bank that calls to ban mining and trading of crypto or directly say it’s going to ban cryptocurrency. One must know that Russia is the third biggest crypto mining nation in the world.
The proposal was taken into consideration the risks of the digital currency that it does not possess the financial stability, the sovereignty of the monetary policy, and financial safety of its citizens. Although Russia has granted legal status to cryptocurrency in 2020 it is always standing straight to resist its usage. Also, it has already banned tokens as a mode of payment.
The other factor of the crash is the US Federal Reserve which is expecting to increase interest rates as soon as March 2022, to reduce the rising inflation in the country. It has made investors more cautious about investments.
Wall Street sell-off is also a factor, as there is a growing correlation between Wall Street and Bitcoin.
