It’s been over a week since the crypto market experienced its first crash since 2017-18. In fact, mainstream media has managed to scare people off since 2020, when the crypto market was still bottoming out, causing them to sell their cryptos every time a small correction occurred. Today, however, it is confirmed. The crypto market actually collapsed, and it was very difficult. In a previous post, we wrote about 3 reasons why the cryptocurrency market was crashing. A lot has happened since that has prolonged this crash until today, so let’s see why the crypto market is still falling.
3- China issues NEW warnings against Cryptos
This is actually not something new. Every year or so, China and other countries issue warnings, leaving people to panic and sell their crypto holdings. This usually happens whenever there is a new uptrend in crypto, and many people jump on the crypto bandwagon. Governments do not like to see that people’s money is not in their control. This is why they are issuing new warnings and regulations that scare people away, allowing them to get rid of their assets or even their earnings. This “dump” is a pure snowball effect, which leads to more FUD in the market, hence the collapse of the crypto market.
2- BlockFi’s mistake had serious consequences
A few days ago, a major cryptocurrency exchange and trading platform called BlockFi offered a bonus to its customers. The exchange decided to send its clients cash in USD if they participated in a trade promotion since March. The company instead sent its customers BTC. For example, if a customer was to be paid $ 50, the company sent them 50 BTC.
Although you might think this is a good thing and more people would be interested in the crypto sphere due to such ‘mistakes’, but the big guys are getting stricter when it comes to payments. This in turn will reduce the traded volumes of Cryptos which will lead to lower demand resulting in a lower price.
The company’s website has even been seen DOWN and people cannot access their funds. This will certainly create fear and more people will be forced to liquidate their assets as soon as possible.
1- Many problems occurring on the Binance Smart Chain
Investors and users of many DApps that integrate on the BSC network have experienced many irregular outages lately. Many users have had problems accessing / using their respective DApp. This has created fear among many crypto enthusiasts, especially those who love Binance as a company and a vision. They saw that the infrastructure was still in its infancy and many decided to leave the Binance ecosystem.
Binance Coin (BNB) also saw a huge drop in its prices, and the coin fell from the third largest crypto by market cap to sixth place on the list. ADA, DOGE, and USDT have managed to outperform BNB, although these coins have also lost around half of their market cap (with the exception of the USDT stablecoin, where people mostly come back to this token to cover fluctuations. of price).
We are not saying that THIS is the only reason the crypto market is collapsing, but rather a combination of all of the above and the previous reasons. Techniques and market sentiment also play a major role in determining the general market trend, so for now the markets are still collapsing… But remember, after the rain comes the rainbow. sky (aka, save time).
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