For the past 60 days, the cryptocurrency market has experienced one of its most bearish periods since its inception, knocking off almost $1 trillion within the timeframe. The top two coins, Bitcoin and Ethereum have seen their value drop by more than 35% and 43% respectively in 2022. At the moment, the total market capitalization is at $1.2 trillion, the lowest in 11 months. These crashes naturally come after reaching record highs due to pent-up demand and hype from institutional investors and celebrities. Elon Musk, a cryptocurrency advocate, consistently hyped up the prices of Bitcoin and Dogecoin last year before the market went red. However, with the market in a downward spiral, here are the top 6 reasons why we are seeing the current cryptocurrency market crash. 1. The Terra Tsunami Last year, Terra Luna was an investor delight gaining over 17000% in value from a very low price of $0.65 in January 2021 to a record high price of $116 in April this year. If you invested a thousand dollars in Terra within the aforementioned timeframe, your investment will be worth a whopping $178,000! But that gain would have evaporated completely after a complex financial attack on the stablecoin, Terra (UST) (an attack which also resulted in the de-pegging of the coin from $1 down to less than 35¢ in a matter of days) led to the cryptocurrency’s capitulation a few weeks ago. UST investors lost almost $45 billion within days. This sell-off ...
