What causes Crypto to crash?

Some crypto crashes are because of systemic issues within crypto, such as the collapse of FTX. Other times, macroeconomic factors such as interest rates and inflation can push values down. If you're following the crypto markets this year, you're likely feeling a bit of whiplash.

What's happened to crypto Cro?

The price of Crypto.com's exchange cryptocurrency cro, designed to ease the flow of funds on the platform, has crashed by around 50% this past week. Liquidity concerns over FTX's own exchange cryptocurrency FTT triggered a bank run situation last weekend after Binance's CZ said he planned to offload some $500 million worth of FTT.

Will cryptocurrencies crash in 2022?

Another reason cryptocurrencies might crash in 2022 is their inability to decouple from the stock market. In many ways, digital currencies are viewed as independent assets and a hedge to the broader market. For example, Bitcoin ( BTC -1.02%) offers the perception of a limited token supply that's capped at 21 million.

Is the crypto market in trouble?

To begin with, history suggests that the crypto market is in trouble. Even though big upswings have occurred frequently over the past decade, reversions following these upswings are commonplace, too. Since the March 2020 bottom, the total value of all digital currencies has jumped more than 14-fold to $2.14 trillion.