Crypto in Free Fall: What’s Behind the Crash and What it Means for Investors

Many factors are at play, from Chinese regulation to Elon Musk, while those in the ecosystem have it attributed short-term traders taking profits.

The Cryptocurrency market on Wednesday saw a massive fall in prices of popular cryptocurrencies including Bitcoin, Ethereum, BNB among others putting investors in a frenzy.

Bitcoin crashed to $30,066, the lowest since late January, wiping out more than $500 billion in value from the coin’s peak market value. This marked its largest one-day loss since March 2020.

Ethereum fell to as low as $1,850, its weakest level since late January. BNB was down almost 31% at $353.12. Almost all other coins are red and dropping as well. As per CoinGecko, the value of more than 7,000 tokens has shrunk more than $600 billion in the past week to $1.9 trillion.

This massive retreat in the crypto boom has come as a test of its durability but on the other hand, is not a surprise given its volatile nature.

Multiple factors are at play, ranging from criticism of the environmental impact of Bitcoin’s energy usage by onetime proponent Elon Musk to Chinese regulators announcing a crackdown on…