6 Reasons

Why Does Crypto Crash?

By Gangahar jena

Cryptocurrencies have had a rough start to the year. As of May 12, Bitcoin (BTC) had lost nearly 40% in value year to date, while ETH and BNB down about 48% in that period

Downturns of Crypto

Crypto data firm CryptoQuant's BTC leverage ratio hit all-time highs in early January, meaning more investors were taking on risk in the crypto space

Investors Too Much Leverage

Crypto markets face when leveraged investors liquidate a large portion of their assets is the overall liquidity of the markets

Lack of liquidity

When China banned crypto mining in June 2021, "miners had to move to other jurisdictions that were more miner-friendly," Peters says

Crypto Regulation

Blockchain and network security are other factors that could cause a crypto crash, Peters says

Security Breaches

Cryptocurrency investors need to keep in mind that "crypto advocates and key influencers can tweet and cause an inflow of capital"

Influencers Causing

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