cryptocurrency is having a terrible week and terrible may even sound optimistic to many some are calling it the great crypto crash on Wednesday bitcoin plunged to nearly 21 000 this is an 18-month low for the world’s largest cryptocurrency it is down by 60 percent from its all-time high of 68 000 per coin in November the second most valuable digital currency meanwhile has lost about a third of its value it fell over 25 percent to 1040. the market itself shrunk massively in November last year the market capitalization of cryptocurrencies was at nearly three trillion dollars and on Wednesday that fell below one trillion dollars why exactly is this happening well the answer is simple look around you recession is looming inflation is soaring and interest rates are rising so it was bound to affect the crypto market as well investors are holding on to their money, not just the big ones even you and I in this market climate people are wary of spending their money if it is something as volatile as a bitcoin people are even more varied this time there were other structural issues as well finance the world’s largest cryptocurrency exchange paused withdrawals for a few hours on Monday it said that the transactions got stuck meanwhile celsius network temporarily halted withdrawals its reason was
extreme market conditions on the other hand coinbase announced that it would lay off about 18 of its workforce this is the largest cryptocurrency exchange in the us by trading volume and it is laying off its staff this has reduced a lot of confidence in the market you see bitcoin’s value is linked to how desirable it is the more people sell the lesser a bitcoin is worth now spooked investors started selling off even more bitcoin in the last decade two crypto downturns saw bitcoin lose more than 80 percent of its value but then coin bounced back eventually given how new crypto is it is naturally more volatile investment advisors have urged extreme caution right now some like bill gates even called the cryptocurrencies a sham but no matter what and who you believe crypto will not be dead after another downturn but it may become less exciting for many we may be in June but it looks like a crypto winter is already

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