Can crypto crash?

The cryptocurrency market has plummeted before and is likely to fall again, so it's important to be prepared. Cryptocurrencies are notoriously volatile and risky, so investors can see market fluctuations of more than 50% in a matter of months and up to 15% in price gains within 24 hours. So why are cryptocurrencies crashing? It is important to remember that in this last cycle, crypto assets are not alone. The stock market has also been experiencing a recession, as U.S.

policymakers seek to control inflation by tightening the money supply and raising interest rates. Cryptocurrency markets are volatile, so buying cryptocurrency at any price, let alone a decline that could become a long-term trend, is risky. While prices could return to previous levels, they could also fall even lower, leaving your investment underwater. The exchange said it hasn't been harmed by cryptocurrency companies seeking protection against bankruptcy.

Therefore, cryptocurrency prices are usually quoted in dollars, most crypto transactions involve stable currencies linked to dollars, and stable currencies linked to the dollar are widely used as secure collateral for cryptocurrency loans. The co-founder of the automated cryptocurrency trading platform Coinrule, Oleg Giberstein, believes that cryptocurrencies are suffering the same tensions as other parts of the economy, leading to falling prices. Reconsider what you would be most comfortable with in the future, such as allocating less money to cryptocurrencies in the future or diversifying through cryptocurrency-related stocks and blockchain funds instead of buying cryptocurrency directly (although you should still expect volatility when the cryptocurrency markets) fluctuate). The crypto ecosystem has firmly adhered to the traditional financial system, and the dollar dominates cryptocurrency markets just as it does with traditional financial markets.

Alexander Osario
Alexander Osario

Total twitter fanatic. Devoted tv trailblazer. Extreme pop culture ninja. Lifelong internet buff. Hardcore sushi expert. Hardcore music buff.

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