What happened to the crypto price?

The crypto price crash has now seen around $1.2 trillion wiped from the combined crypto market after it hit an all-time high of $3 trillion in November. The bitcoin price is down almost 50% from its peak of nearly $70,000 per bitcoin.

What causes cryptocurrencies to crash?

An abrupt drop in price can generate panic, with traders escaping to cryptocurrencies with more stable value or fiat. Flash crashes can occur beyond the immediate control of human beings. They may be produced by algorithmic trading programs, triggering one another to sell in a feedback loop.

How many bitcoin flash crashes in 2021?

Over the course of 2021, bitcoin's price experienced no less than six flash crashes. A cryptocurrency “flash crash” is a market event in which many holders of a particular crypto asset suddenly decide to sell, overwhelming buyers and forcing the price to fall sharply within a very short time period.

Why did cryptocurrencies gain so much in the last 12 months?

Much of those gains came from huge price increases in smaller cryptocurrencies, with ethereum and its rivals Binance's BNB, solana, cardano all far outpacing bitcoin over the last 12 months. The Fed is now beginning to "taper" its loose economic policy following a sharp rise in inflation and an almost fully-recovered labor market.