London, Europe Brief News – There are a number of reasons that have caused crypto prices to crash after experiencing much success and setting a new record during the whole year.
The cryptocurrency market is becoming more and more volatile with each passing day and everybody is confused when exactly the prices are going to stay stable.
People have seen unpredictable price changes in a span of two-three months which has been shocking.
China has announced certain new limitations to be followed for cryptocurrency industries. This decision by the Chinese government played a huge role in the decline as it saw so many investors selling their mining equipment which directly affected the bitcoin and other popular cryptocurrencies to go down in value.
The crypto world got a massive hit when Tesla took a u-turn and stopped accepting bitcoin as payment for its products.
In the recent wave of crypto restriction, China ordered authorities to fully ban bitcoin mining in the Sichuan province as well as asked banks to stop the crypto transactions.
The People’s Bank of China has decided to ban digital coinage after declaring cryptocurrency transactions to be illegal.
These incidents have influenced the cryptocurrency markets all around the globe which resulted in people losing so much money.
The global crypto market was touching its all-time high records and valued more than $3.1 trillion for the very first time in 2021.
But the year 2022 saw the biggest dip in history as the value dropped significantly to $1.65 trillion. This huge drop in value has made cryptocurrency the most unpredictable and volatile industry in 2022.
Bitcoin which is considered the king of the crypto world has lost 46.8% of its market value during this dip. Bitcoin was staging an all-time high with the value of $69,044,77 on November 10.
Why is the crypto market crashing?
Some Powerful governments around the globe are banning cryptocurrency-related activities which are harming this industry more than anything.
First, it was China who announced the cryptocurrency activities to be stopped and even some banks stated it as illegal. The US government is cracking down on a few areas of the business.
The Russian central bank has asked for an absolute ban on cryptocurrency activities on Russian soil, making a point that digital currency is hurting the financial stability of the country.
