Is a crypto market crash inevitable?

Some of the most popular assets like Bitcoin and Ethereum have lost 9% and 20% of their value, respectively, since the beginning of the year as well, leading many investors to worry a crypto market crash may be inevitable. While the crypto market is known for being extremely volatile, this isn’t the first time it has taken a big nosedive.

What happened to cryptocurrencies?

Crypto’s crash continues - the Celsius cryptocurrency has lost nearly 80 per cent of its value, as The Independent’s Anthony Cuthbertson documents. Elsewhere, Bitcoin has crashed more than 10 per cent at the start of the week, falling below $25,000 for the first time since December 2020.

Why are 94 of the largest Cryptos down today?

Indeed, 94 of the largest 100 cryptos by market capitalization are down today as the crypto crash continues to make waves. So, what’s behind this massive crypto crash? Today’s drop is likely in response to uncertain market conditions, amplified by an upcoming Capitol Hill announcement.

Will a crypto crash tripped up banks?

In March, for example, the Acting Comptroller of the Currency warned that banks could be tripped up by crypto derivatives and unhedged crypto exposures, given they are working with little historical price data. Still, regulators overall are divided on the size of the threat a crypto crash poses to the financial system and broader economy.