Why is Cryptocurrency Crashing Today?

Why is Cryptocurrency Crashing Today?

2022-06-23 | Selina Mathew

Why is Cryptocurrency Crashing Today?

Cryptocurrency seems to be dropping in value overnight as the crypto crash sent Bitcoin and Ripple plummeting. With major cryptocurrencies falling, it appears that the cryptocurrency crash is on the horizon. Investor and entrepreneur Kevin O’Leary said on Friday that Bitcoin was looking “brilliantly like a bubble” and predicted that in the future, it would be worth only $5. Cryptocurrency crashed today due to several factors, such as fear and uncertainty. Since the market is susceptible to news and rumour, the combination of this event with a bearish economic outlook may have contributed to the crash seen today.

Lack of regulation

This means that there's no one to protect you from fraud or theft if you lose your cryptocurrency. Cryptocurrency exchanges are unregulated, which means there's no oversight over how they operate or what happens to your money if something goes wrong with an exchange

Fraud

Many people were scammed by people creating fake cryptocurrencies, and there were also several notable cases of fraud where Bitcoin was used to pay the ransom. The value of  Bitcoin by one-third and of other cryptocurrencies has dropped even further — Ethereum is down more than 50 percent, Ripple is down more than 60 percent, and Litecoin is down more than 70 percent.

Exchanges

Major platforms like Coinbase are experiencing issues with funding accounts and making trades. Due to an overwhelming surge in traffic, Coinbase.com experienced a service outage during peak trading hours.

A statement from the company states, "We know how critical our services are to our customers' success, and we will do everything we can to get our site back up as soon as possible."

Coinbase is one of the largest cryptocurrency exchanges by volume, handling more than $25 billion worth of daily trades.  At times this year and handling more than $50 billion worth of trades since its founding in 2012.  But Thursday's outage was the second time this month that Coinbase has been forced to suspend trading activity because of technical issues.

Uncertainty about Bitcoin's future

This creates an uncertain market. The first thing that happened was that China announced plans to ban all cryptocurrency trading in the country.  This caused a lot of fear about what would happen to other countries if they also banned crypto trading or mining. The second thing that happened was that Facebook announced that they were banning all ads related to cryptocurrency.  This sent a message to investors that they were not interested in promoting this type of investment opportunity online.

This caused even more uncertainty about how big companies would view cryptocurrencies in general.

The third thing that happened was that several banks have stopped supporting customers who want to buy Bitcoin with their credit cards or bank accounts (such as Capital One).

This is important because it means people can't buy Bitcoin using traditional banking methods with their money anymore (at least for now). These changes will likely lead many people to sell off their Bitcoin holdings because they don't want them anymore if they aren't able to use them as quickly as before.

Takeaway

With that, I hope you find this article helpful. The blockchain space is developing very quickly, and there are a lot of terms that can be confusing to even experts in the field.

But with a clear understanding of the issues and vocabulary involved, you can make sense of what's happening today and be ready to tackle the challenges of tomorrow.

Also, you must do thorough research before investing in the cryptocurrency market. Read More  @  Shiba Inu Coin Price Prediction 2050

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