Crypto crash: The crypto market has seen a decline of 70% in the last 18 months, when it was at its highest level, then its market cap was $ 3 trillion and today it has fallen below $ 1 trillion for the first time. Friends, $ 2 trillion has decreased completely, if you compare with this amount, then there are only eight countries in the world whose GDP will be barely 2 trillion, such as Canada, Italy and Brazil have a GDP of $ 1.83 trillion. crypto exchange kya hain
The world’s most famous crypto currency, Bitcoin, has also reached its lowest level. In January 2022, the price of bitcoin was $45,000. But in the last eight months, today its price has reached close to $ 21,000. Why is the crypto market down today? First of all, understand what is meant by a market crash.
What is Market Crash?
Suppose you bought an item for ten thousand and you were in the hope that in the coming few days its value will become one and a half or two times. But you come to know that for some reason the value of your item has halved. This means that the item you had bought for ten thousand has now become five thousand.
Similarly, suppose in the crypto market, for example, you have bought bitcoin for two lakhs and you were in the hope that in the coming time it will be from two lakhs to two and a half lakhs. But it seems to you that the bitcoin that you had bought for two lakhs, now its value has remained only one lakh. It is called Crypto Crash and it crashes so much that fifty percent of your worth suddenly comes down. Let us know what are the reasons for the crash of the crypto market.
5 reasons to down crypto market
Reason 1 – Friends, a few months ago, the Central Bank of China had declared all crypto currency illegal and also said that now we will not have crypto mining here, which means that now neither crypto will be made here nor used. will go. Due to which the crypto market had fallen a lot even at that time.
Reason 2 – Recently, a few days ago, America has also said that anyone who has virtual currency or digital currency or online shares or someone has bought bonds, green bonds, where whoever has invested. Now they will completely track who has bought where and what. As soon as this news came out, many people of America started withdrawing money from the crypto market. Due to which there was a decline in the crypto market and it became the second major reason for the market crash.
Reason 3 – One country after the other on crypto currency has banned this digital currency for one reason or the other. In many of these countries, the name of Russia was added on one side. The Central Bank of Russia has banned the payment, use and mining of cryptocurrencies. The central bank cited the reason for its use as “volatile, illegal activities and money laundering”.
In a description entitled “Cryptocurrencies: Trends, Risks, Measures”, the central bank said that cryptocurrencies allow people to move their money out of the country’s economy, weakening the economy and for regulators to change their monetary policies. It’s becoming increasingly difficult to keep up. With which it became the third major reason for the crash of crypto currency.
Reason 4 – Friends, in today’s time everywhere the crisis is of inflation. Inflation Crisis Not only in India, but in many countries of the world, inflation is at its peak. There is a crisis of inflation in the country including America. There are some such reasons for the increase in inflation which are mentioned below-
The disputes which have spread at the international level, due to the Russo-Ukraine war, which are engaged in all the conventions. Due to which the producers, oil and gas from Russia are not being supplied to many countries around the world. Due to which the means which were already there have become expensive.
We had just left from the Corona period, then due to the war of Russia-Ukraine, there was an outcry in the world, due to which the traveling passengers stopped traveling. This came out to be the second biggest cause of inflation.
The prisoner who was engaged in the Corona epidemic, due to which many people became unemployed, due to which the burden of unemployment suddenly came on the governments. To handle the unemployed, on giving relief packages such as Jan Dhan Yojana and Ayushman Bharat etc. All these ultimately resulted in inflation.
In such a situation, the Federal Reserve Bank of America raised interest rates to control inflation. Due to which those people who had cash currency in their homes deposited them back in the bank and those who had bought crypto from cash currency, those people sold the crypto and deposited it back in the bank, otherwise interest would be charged. Due to which the fourth major reason for the crypto market crash comes out.
Reason 5 — Celsius: Friends, crypto currency is a virtual currency that you cannot touch, you cannot keep it with you, so when you buy crypto currency, an online bank has been created to keep it, whose name is Celsius, the landing of U.S.A. company is. Which works to keep crypto currency means that Celsius tells people to deposit your crypto in our bank and we will give you 18 to 20% interest annually.
This is the same way friends, the way you deposit your money in your traditional bank in the form of FD and that bank gives you 3 to 4% interest. In the same way, when you deposit your crypto, you get interest on it too.
In the greed of 20% interest, people deposited all their crypto in Celsius. After which the net worth of Celsius crossed $ 25 billion. After that, when the crypto currency was banned in many countries or due to this inflation, when the market saw a decline, those people who had bought crypto started withdrawing their crypto from celsius to sell crypto, about 1 to 7 days. The net worth of I celsius, which was $ 25 billion, is now about $ 11 billion.
After this celsius froze everyone’s accounts. After which no one could withdraw their crypto, meaning that Celsius refused to withdraw crypto that you could not withdraw crypto, after which there was a panic in the market and $ 11 billion remained in Celsius’s account. After which it became the fifth biggest reason for the market crash.