Is a crypto market crash inevitable?

Some of the most popular assets like Bitcoin and Ethereum have lost 9% and 20% of their value, respectively, since the beginning of the year as well, leading many investors to worry a crypto market crash may be inevitable. While the crypto market is known for being extremely volatile, this isn’t the first time it has taken a big nosedive.

What happened to cryptocurrencies?

A cryptocurrency that promoted itself as a stable means of exchange collapsed. And more than $ 300 billion was wiped out by a crash in cryptocurrency prices since Monday. The crypto world went into a full meltdown this week in a sell-off that graphically illustrated the risks of the experimental and unregulated digital currencies.

Is a crypto collapse a 'perfect storm'?

Critics said the collapse was long overdue, while some traders compared the alarm and fear to the start of the 2008 financial crisis. “This is like the perfect storm,” said Dan Dolev, an analyst who covers crypto companies and financial technology at the Mizuho Group.

How long will crypto's collapse last?

In the last five days alone, Bitcoin has tumbled 20 percent, compared to a 5 percent decline in the S&P 500. Prices are through 6 p.m. Eastern time on May 12. How long crypto’s collapse might last is unclear. Cryptocurrency prices have typically rebounded from major losses, though in some cases it took several years to reach new heights.