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.

What happened to the cryptocurrency market?

Recent high-profile financial meltdowns at Bitcoin, Celsius, and Terraform Labs, which together wiped out hundreds of billions in market value, helped trigger a flight from the cryptocurrency market, driving its value from $2.9 trillion last fall to less than $900 billion today.

What causes cryptocurrencies to crash?

An abrupt drop in price can generate panic, with traders escaping to cryptocurrencies with more stable value or fiat. Flash crashes can occur beyond the immediate control of human beings. They may be produced by algorithmic trading programs, triggering one another to sell in a feedback loop.

Is the crypto crash a global casino?

This “crypto crash” has reinforced the perception of critics that markets for the digital currency—used primarily as an investment vehicle as it is not widely accepted as payment for goods and services—are little more than global casinos operating with virtually no rules or accountability.