What caused the crypto crash?

The crypto crash appeared to come out of nowhere, but there were a few factors that led up to it. For one, Tesla CEO Elon Musk announced that the company was suspending its acceptance of Bitcoin as a form of payment due to concerns over its impact on the environment.

What's happening to crypto?

Fed interest rate hikes are driving investors back to traditional assets. Institutions are also cooling on crypto following an epic 2021. Total crypto market capitalization has fallen to its lowest level in ten months. A further $130 billion has left the space over the weekend resulting in a market cap slump to $1.62 trillion.

Why did the crypto market shaky a week before the crash?

The crypto market had been especially shaky for about a week before the crash on Wednesday. On May 12, bitcoin fell 12% after Elon Musk walked back Tesla’s commitment to accept bitcoin as payment, citing concerns over the crytocurrency’s massive carbon footprint.

Did a crypto crash wipe out $1 trillion in market value?

On Wednesday, a broad crypto crash wiped out about $1 trillion in market value — a staggering drop from $2.5 trillion just a week ago. Bitcoin, which accounts for more than 40% of the global crypto market, nosedived 30% to $30,000 on Wednesday, its lowest point since January.