3 Big Reasons Why The Cryptocurrency Market Crashed In The Start Of 2022

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.
 

sincerem

VIP Contributor
I see, that's a major part of the market crash down. Even at the moment the market is going down. The red symbol has no ending at the meantime, it's still going deeper and deeper. I believe the major cause is simply from the long term investors and also the whales pulling their investment put of the coin, due to the market slip off. They simply don't want to risk it all, they simply want the profit and not being at a flat loss. At the meantime, Bitcoin is valued around $35,000+, their is since for it to dwindle more. It has seen more than -11% within the last 24 hours and -22% in the last seven (7) days. That's a whopping price furlough, which no one wanted, but it isn't surprising due to how crypto behaves.
 

Good-Guy

VIP Contributor
I see, that's a major part of the market crash down. Even at the moment the market is going down. The red symbol has no ending at the meantime, it's still going deeper and deeper. I believe the major cause is simply from the long term investors and also the whales pulling their investment put of the coin, due to the market slip off. They simply don't want to risk it all, they simply want the profit and not being at a flat loss. At the meantime, Bitcoin is valued around $35,000+, their is since for it to dwindle more. It has seen more than -11% within the last 24 hours and -22% in the last seven (7) days. That's a whopping price furlough, which no one wanted, but it isn't surprising due to how crypto behaves.

The sad thing is that the market has suffered a lot, but the cryptocurrency market often has a much harder time recovering from the impact of loss of investments in the market. The market usually crashes when the investors pull their capital from the market and the Market capitalization of the cryptocurrencies get affected in a really terrifying way. The trading volume of the cryptocurrency market also fluctuates and this is a pretty good indicator that the market is falling. Unfortunately, I have been using these basic analytical tactics to predict the crash of the cryptocurrency market, but there is a big difference of opinions about this.

Some experts believe that Market capitalization could be used to predict the price of coins. However, some of them disagree with this notion. I have used Market capitalization to predict the prices of coins, but I have not achieved much success. The fact remains that cryptocurrency market is so unpredictable that it could crash within a few minutes and this is what I have also noticed myself. However, you can still look for the key signs that may help you to predict that the market will crash. For example, when the news of Russia's supposed ban on cryptocurrency trading was released, I immediately knew that the market would crash. Interestingly, this is exactly what happened the next day!
 

sincerem

VIP Contributor
The sad thing is that the market has suffered a lot, but the cryptocurrency market often has a much harder time recovering from the impact of the loss of investments in the market. The market usually crashes when the investors pull their capital from the market and the Market capitalization of the cryptocurrencies gets affected terrifyingly. The trading volume of the cryptocurrency market also fluctuates and this is a pretty good indicator that the market is falling. Unfortunately, I have been using these basic analytical tactics to predict the crash of the cryptocurrency market, but there is a big difference of opinions about this.

Some experts believe that Market capitalization could be used to predict the price of coins. However, some of them disagree with this notion. I have used Market capitalization to predict the prices of coins, but I have not achieved much success. The fact remains that the cryptocurrency market is so unpredictable that it could crash within a few minutes and this is what I have also noticed myself. However, you can still look for the key signs that may help you to predict that the market will crash. For example, when the news of Russia's supposed ban on cryptocurrency trading was released, I immediately knew that the market would crash. Interestingly, this is exactly what happened the next day!
That's impressive that you've been following the market trend for a while now to get the needed information around crypto currency. With the negative information around crypto currency, it is a sign of market downtrend. That's what I try to avoid when it comes to trading crypto currency, because I don't want to lose more than I could afford. I simply swap my volatile coins to a stable coin like USDT, after the bearish run I simply switch to a volatile coin back to minimize loss and maximize profit.
 
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