What's going on with Crypto's latest price crash?

Crypto's latest price crash means an eye-watering $500 billion has now been wiped from the combined crypto market in just one week, reducing it to levels not seen since last summer. Sign up now for the free CryptoCodex—A daily newsletter for the crypto-curious. Helping you understand the world of bitcoin and crypto, every weekday

Why did the crypto market shaky a week before the crash?

The crypto market had been especially shaky for about a week before the crash on Wednesday. On May 12, bitcoin fell 12% after Elon Musk walked back Tesla’s commitment to accept bitcoin as payment, citing concerns over the crytocurrency’s massive carbon footprint.

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 market hurting the economy?

The crypto market has shed almost $2 trillion in value, triggering some concern it could hurt the larger economy. Experts aren't too worried ... yet. A candlestick chart displays Bitcoin value in the window of a cryptocurrency exchange kiosk in Istanbul on April 26. Erhan Demirtas / Bloomberg via Getty Images file