What is a crypto crash?

This guide will explain what a crypto crash is and what causes it. It also delves into the risks of buying cryptocurrency in a bear market, as well as how crypto holders can invest during a recession. A crypto crash is a situation where the cryptocurrency market takes a downward trajectory, with most digital coins falling in value.

What's happening to crypto?

Fed interest rate hikes are driving investors back to traditional assets. Institutions are also cooling on crypto following an epic 2021. Total crypto market capitalization has fallen to its lowest level in ten months. A further $130 billion has left the space over the weekend resulting in a market cap slump to $1.62 trillion.

Why did the crypto market crash in 2022?

The 2022 crypto crash occurred due to multiple reasons, including international geopolitics, the stock market, and the US economy. Besides, the world is adjusting from the pandemic that saw many people invest in the crypto market and its allied businesses.

Did a crypto crash wipe out $1 trillion in market value?

On Wednesday, a broad crypto crash wiped out about $1 trillion in market value — a staggering drop from $2.5 trillion just a week ago. Bitcoin, which accounts for more than 40% of the global crypto market, nosedived 30% to $30,000 on Wednesday, its lowest point since January.