Why is XTZ going down?

The XTZ cryptocurrency has endured a significant decline in value throughout the year, with a drop of nearly 77% year-to-date. This downward trend underscores the volatility and unpredictability of the cryptocurrency market.

Tracing the token's trajectory further back, it becomes evident that the decline extends beyond the current year. Since reaching its all-time high in October 2021, XTZ has plummeted by over 88%, marking a substantial erosion of its value.

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This precipitous fall in price can be attributed to various macroeconomic factors that have destabilized both traditional and cryptocurrency markets. Investors have been grappling with uncertainty and a lack of clarity regarding the future direction of the global economy.

Among the many factors contributing to the volatility and uncertainty in the markets, economic downturns, geopolitical tensions, and regulatory changes have played prominent roles. These developments have caused widespread concern among investors, leading to a more cautious approach to risk-taking.