Crypto collapse: Why It Happened

Cryptocurrency is at an all time low. What happened?


Bitcoin is a digital asset and a payment system invented. Bitcoin is unique because there are a finite number of them: 21 million.

Bitcoin is traded on exchanges and can also be used to purchase goods and services.

Bitcoin reached its lowest price until January 2022, on a day on which multiple cryptocurrencies have lost significant value.

Bitcoin is worth half the worth it was just six months ago when it reached an all-time high of $51,000 per bitcoin on 10 November 2022, whereas Terra (LUNA) has recently fallen after a considerable loss of 96 percent.

The crypto market has witnessed a recent decline in popularity due to economic pressures worldwide caused by the invasion of Ukraine by Russia after the Covid pandemic and lockdowns created because of said invasion.

Tesla has reversed its decisions and has started accepting Bitcoin as an alternative payment for its services and products. China has taken action on initial coin offerings, block exchanges, and speculative trading.

Chinese regulators simultaneously rescinded licenses for Bitcoin mining operations in Sichuan, instructing banks to stop facilitating crypto transactions, and later imposed additional sanctions on crypto trading.

Why is the crypto market down?

Negative macroeconomic forecasts have brought a worrying outlook for many nations worldwide. This has caused the cryptocurrency market to lose confidence.