Why Is Crypto Tanking?

why is crypto tanking

If you haven’t already, you should read this article, which explains the latest trend in cryptocurrency. The cryptocurrency world is roiled right now, and it can offer both opportunities and risks. Bitcoin, for example, has rallied hard after previous major declines, so there’s reason to believe it can continue on its current trajectory. Nevertheless, investors should not rush into cryptocurrency investments without careful consideration of the risks. Even though cryptocurrency has potential to become a huge asset, the market can be volatile and investors can lose money.


Why is cryptocurrency tanking? A few reasons are apparent. In the first instance, the lack of liquidity is the primary culprit, and many investors have jumped on the bandwagon. However, the lack of liquidity is also a contributory factor, as whales sell coins in anticipation of bad news. Moreover, if the price of a particular coin is low, it can lead to an unnaturally high market volatility.


While the price of Cardano is currently under pressure, it is likely to start climbing again. In fact, its value is probably undervalued at the moment. It might be a good time to buy the cryptocurrency if you are looking for long-term gains. The ADA/USD ratio of Cardano is also higher than the overall crypto market. The reason for this might be a combination of several factors. Cardano’s recent rise in value is being attributed to two major events. First, it is a sign that the cryptocurrency market is recovering from the recent sell-off. Second, it’s a sign that some critics are predicting a resurgence of the cryptocurrency market.

Shiba Inu

The price of a cryptocurrency like the Shiba Inu (SHIB) has been under heavy scrutiny due to geopolitical headaches and stagflation. Several bearish signals have been triggered in the cryptocurrency, and it seems that the price can only go down from here. Until further notice, the price of the crypto could continue to dip if there is no news about a successful peace process in Ukraine.


There’s been an Avalanche of crypto in recent weeks, and the price of Bitcoin is the leading cryptocurrency in this downturn. Ethereum is a popular platform for transferring digital assets, but other projects have entered the market to compete with it. Avalanche, for instance, aims to be faster and cheaper than Ethereum. This network can handle over four thousand transactions per second, while Ethereum only supports thirteen. However, this doesn’t mean that Avalanche is worse than Ethereum.

Bitcoin’s price

If you are wondering why Bitcoin’s price is tanking, the answer lies in the U.S. Federal Reserve’s new policy on asset purchases. In a recent announcement, Fed Chair Jerome Powell said that the bank will buy $20 billion fewer U.S. Treasury bonds per month. It will also reduce purchases of U.S. agency securities by ten billion dollars per month. The impact of this move is a clear indication that the price of Bitcoin will continue to fall.

War in Ukraine

The recent war in Ukraine is causing high volatility in the market, which has affected everything from cryptocurrency to major equities. Crypto has suffered a sharp drop in the last 24 hours as investors flock to other assets, citing the unstable situation in Ukraine. It also affects many of the investors that hailed the crypto bubble last year, as every investor has sold off their coins. The war has hit the ruble particularly hard as the price of the currency plummeted by around half of its value.

Inflationary fears

Crypto’s recent sell-off appears related to concerns about high inflation. US inflation hit 7% in December, the highest since 1982, and global supply chains can no longer keep up with demand. As a result, the Fed has signaled plans to raise interest rates in the near future. Some experts have speculated that the fall in crypto could have its roots in the tech industry. This article outlines why this could be the case.

Lack of liquidity

The latest crash in crypto prices can be attributed to the lack of liquidity in the market. The main causes are perceived demand and supply in the crypto space, says former finance secretary, Subhash Chandra Garg. The decline in crypto prices follows a trend in global stock markets, which are already experiencing a significant slump. Global central banks are tightening their policies and withdrawing $3 trillion in liquidity. This, in turn, will have a negative impact on crypto trading volumes.