Why is bitcoin crashing?

The current slide of Bitcoin and other cryptocurrencies is being caused by a combination of short-term and long-term inputs, including larger financial markets and the crashing of a major stablecoin. Here are some of the main factors leading to the current slump. Bitcoin is connected to the rest of the financial market.

Why did Bitcoin crash in 2021?

China’s crackdown on bitcoin mining in mid-2021, for example, led to Bitcoin crashing from $65,000 in April to $35,000 in June. The total market capitalization of crypto similarly fell around that time when Elon Musk announced Tesla would no longer accept bitcoin for payments in May 2021, citing environmental reasons.

Why is the crypto market crashing?

Here are some of the main factors leading to the current slump. Bitcoin is connected to the rest of the financial market. Crypto evangelists have long hoped that the independent nature of crypto would make it resistant to inflation and crises.

What happened to B itcoin?

B itcoin took a brutal fall on Monday, briefly dipping below $30,000 for the first time since July 2021. The world’s largest cryptocurrency is now worth less than half of what it was in the fall. Other cryptocurrencies, like Ether and BNB, have seen similar falls, while trading volumes have also tapered off on major exchanges.