{"id":914,"date":"2022-05-10T07:47:18","date_gmt":"2022-05-10T07:47:18","guid":{"rendered":"https:\/\/digitalcoinprice.com\/blog\/?p=914"},"modified":"2023-03-29T12:37:04","modified_gmt":"2023-03-29T12:37:04","slug":"3-reasons-behind-the-crypto-market-crash","status":"publish","type":"post","link":"https:\/\/digitalcoinprice.com\/blog\/3-reasons-behind-the-crypto-market-crash","title":{"rendered":"3 Reasons Behind The Crypto Market Crash &#8211; and Experts Forecast More Pain Ahead"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_73 counter-flat ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Content<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #223c50;color:#223c50\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #223c50;color:#223c50\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/digitalcoinprice.com\/blog\/3-reasons-behind-the-crypto-market-crash\/#The_Federal_Reserve_interest_rate_hikes\" title=\"The Federal Reserve interest rate hikes\">The Federal Reserve interest rate hikes<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/digitalcoinprice.com\/blog\/3-reasons-behind-the-crypto-market-crash\/#Why_did_the_FED_increase_the_interest_rates\" title=\"Why did the FED increase the interest rates?\">Why did the FED increase the interest rates?<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/digitalcoinprice.com\/blog\/3-reasons-behind-the-crypto-market-crash\/#Cryptocurrencies_are_under_attack_in_certain_countries\" title=\"Cryptocurrencies are under attack in certain countries.\">Cryptocurrencies are under attack in certain countries.<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/digitalcoinprice.com\/blog\/3-reasons-behind-the-crypto-market-crash\/#Meme_coins_are_killing_FOMO_trades\" title=\"Meme coins are killing FOMO trades.\">Meme coins are killing FOMO trades.<\/a><\/li><\/ul><\/nav><\/div>\n<p><span style=\"font-weight: 400;\">Crypto investors have been facing a terrific down face of crypto for the last couple of months. At the time of writing today, bitcoin today&#8217;s price is $30,000, and it has dropped 40% since mid-November 2021.\u00a0\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Bitcoin crash, 2022 has been a very crucial year for Bitcoin and the whole crypto market, but analysts and market experts are still predicting the $100,000 price of Bitcoin. It is good, but more matter is what&#8217;s next, if not.\u00a0<\/span><\/p>\n<p>Bitcoin dropped below $30,000, and all leading crypto market prices are going down day by day.<\/p>\n<p>Panic sellers and crypto whales can put the crypto market in big trouble.<\/p>\n<p>Let&#8217;s see the causes of the crypto market crash.<\/p>\n<p><b>Key Point:<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">It has been a bad start to the year 2022 for investors and traders with the fall of Bitcoin, Ethereum, Ada, Polkadot, and many more valuable and leading cryptocurrencies.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Customer sentiments, scams, and fund news make the market weeker all day.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The total market cap has ranked at a ten-month low of $1.16 trillion.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Provided interest hikes are splitting investors and traders back to the traditional assets.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">A price drop of 6% occurred after the Federal Reserve announced it would fight inflation without higher rates on the date 5th of April 2022, after which Bitcoin&#8217;s price fell to $34,550 and is still dropping.\u00a0\u00a0\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">On one side, interest rates increased. On the other side, the crypto market was dumped\u2014all the top cryptocurrencies like <\/span><a href=\"https:\/\/digitalcoinprice.com\/coins\/bitcoin\"><b>Bitcoin<\/b><\/a><b>, <\/b><a href=\"https:\/\/digitalcoinprice.com\/coins\/ethereum\"><b>Ethereum<\/b><\/a><b>, <\/b><a href=\"https:\/\/digitalcoinprice.com\/coins\/solana\"><b>Solana<\/b><\/a><b>, <\/b><a href=\"https:\/\/digitalcoinprice.com\/coins\/decentraland\"><b>MANA<\/b><\/a><span style=\"font-weight: 400;\">, and many more are bleeding and testing the face of a crash.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The global market cap crashed by 7.30% and was reduced to $1.67 trillion. We may have a chance that we&#8217;re going to meet a $35,000 area soon.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">A market expert analyzing the market personally feels that the market may touch the $29,000 support area, and after that, the market may pump in July. So, we will see greenery soon in the market as markets can reverse fast more quickly.\u00a0\u00a0\u00a0\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">According to market analysts, for several weeks now, Bitcoin&#8217;s price has mainly fluctuated between $36,000 and $42,000. Inflation, geopolitical tensions, and Fed fears about tightening monetary policy are all factors behind increased market volatility.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">According to the most recent <\/span><a href=\"https:\/\/www.bls.gov\/news.release\/cpi.nr0.htm\" target=\"_blank\" rel=\"nofollow noopener\"><b>inflation report<\/b><\/a><b>,<\/b><span style=\"font-weight: 400;\"> the Fed is racing to combat the 8.5% inflation in March.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The total market cap of crypto has been ruined to its lowest level in ten months. The market cap decreased to $1.62 trillion over the weekend due to an additional $130 billion leaving the space. Earlier this month, it reached a low of $1.67 trillion.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">At the time of writing, top leading cryptocurrencies like <\/span><a href=\"https:\/\/digitalcoinprice.com\/coins\/bitcoin\"><b>Bitcoin (BTC<\/b><b>)<\/b><\/a><span style=\"font-weight: 400;\"> and <\/span><a href=\"https:\/\/digitalcoinprice.com\/coins\/ethereum\"><b>Ethereum (ETH)<\/b><\/a><span style=\"font-weight: 400;\"> have been bleeding for eight months. Bitcoin has dropped almos<\/span><span style=\"font-weight: 400;\">t 9.55%,<\/span><span style=\"font-weight: 400;\"> and Bitcoin today&#8217;s pri<\/span><span style=\"font-weight: 400;\">ce is $30,150, and Ethereum (ETH) is down by 7.65% and holds a rate of $2,419.\u00a0\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Several factors are causing the selloff, not just the cyclical nature of crypto markets.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h2><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-915 aligncenter\" src=\"https:\/\/digitalcoinprice.com\/blog\/wp-content\/uploads\/2022\/05\/image_2022_05_10T07_06_41_793Z-300x200.png\" alt=\"\" width=\"300\" height=\"200\" srcset=\"https:\/\/digitalcoinprice.com\/blog\/wp-content\/uploads\/2022\/05\/image_2022_05_10T07_06_41_793Z-300x200.png 300w, https:\/\/digitalcoinprice.com\/blog\/wp-content\/uploads\/2022\/05\/image_2022_05_10T07_06_41_793Z-1024x683.png 1024w, https:\/\/digitalcoinprice.com\/blog\/wp-content\/uploads\/2022\/05\/image_2022_05_10T07_06_41_793Z-768x512.png 768w, https:\/\/digitalcoinprice.com\/blog\/wp-content\/uploads\/2022\/05\/image_2022_05_10T07_06_41_793Z-1536x1024.png 1536w, https:\/\/digitalcoinprice.com\/blog\/wp-content\/uploads\/2022\/05\/image_2022_05_10T07_06_41_793Z-2048x1365.png 2048w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/h2>\n<h2><span class=\"ez-toc-section\" id=\"The_Federal_Reserve_interest_rate_hikes\"><\/span><b>The Federal Reserve interest rate hikes<\/b><b><\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">4th May, Wednesday, 2022, the U.S. federal reserve announced late at night and declared short-term interest rates by 0.5%. Since 2000, rates have increased the most. In March, interest rates increased by 0.25 percentage points for the first time since 2018.\u00a0\u00a0\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It may change that the Fed will raise rates several times in the year itself to keep inflation rates under control.\u00a0<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Why_did_the_FED_increase_the_interest_rates\"><\/span><b>Why did the FED increase the interest rates?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">The US FED attempts to fight inflation with its contractionary monetary policy by raising short-term rates. By reducing spending in the U.S., the FED attempts to combat inflation.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Because of the FED&#8217;s decision, fewer people will purchase products and services. As interest rates rise, people will find it harder to borrow money for new purchases, so they will not be able to spend as much.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Cryptocurrencies_are_under_attack_in_certain_countries\"><\/span>Cryptocurrencies are under attack in certain countries.<b><\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Investors and market analysts have noticed that not all country&#8217;s governments are happy with the use of cryptocurrency mining and blockchain usage. It consumes high power and loaded computers to set complex mathematical equations that validate the transaction blocks.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">China fell on foot last year and banned financial institutions from undertaking crypto transactions and may wound up the mining procedures and miners a month after.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">China is not the only country facing these challenges. In addition to Egypt, Iraq, Algeria, and Bangladesh, more than a half-dozen countries have banned all crypto. In addition, the use of crypto by financial institutions is illegal in more than thirty countries.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Meme_coins_are_killing_FOMO_trades\"><\/span><b>Meme coins are killing FOMO trades.<\/b><b><\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Some popular meme tokens are also responsible for the cryptocurrency crash.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Last year, investors and traders gained a massive 46,000,000% return on their investments in Shiba Inu and<\/span> <span style=\"font-weight: 400;\">3,500% in DogeCoin. The Shiba Inu token inspired me of the Shiba Inu dog breed. As a result of these massive gains, cryptocurrencies were driven by fear of missing out (FOMO). One more surprise is that Shiba and Doge were the <\/span><span style=\"font-weight: 400;\">most searched digital cryptocurrency in the U.S. in 2021.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In May of 2022, DogeCoin lost more than 80%, and ShibeInu is almost 75% from its all-time high point.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Indeed, even with enormous virtual entertainment following for <\/span><a href=\"https:\/\/digitalcoinprice.com\/coins\/shiba-inu\"><b>SHIB<\/b> <\/a><span style=\"font-weight: 400;\">and <\/span><a href=\"https:\/\/digitalcoinprice.com\/coins\/dogecoin\"><b>DOGE<\/b><\/a><span style=\"font-weight: 400;\">, the FOMO exchange has endured a reasonable shot. That is awful information for a resource class dependent on feeling and force to head higher.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">As market analysts can tell, the destiny of Bitcoin is still unconvinced because of several scenarios and strategies that could recreate. <\/span><a href=\"https:\/\/digitalcoinprice.com\/\"><b>DigitalCoinPrice<\/b><\/a><span style=\"font-weight: 400;\"> has made some potential outcomes for <\/span><a href=\"https:\/\/digitalcoinprice.com\/coins\/bitcoin\"><b>Bitcoin (BTC<\/b><b>)<\/b><\/a><span style=\"font-weight: 400;\"> from 2022 to 2025. We hope this <\/span><a href=\"https:\/\/digitalcoinprice.com\/forecast\/bitcoin\"><b>price analysis of Bitcoin<\/b><\/a><span style=\"font-weight: 400;\"> can give you a better idea of what to do in the coming years.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Every buddy is waiting for a $100,000 price hike for Bitcoin, and we hope one day it will happen. After reading this blog, if You are still planning to invest some bugs in Bitcoin (BTC) or any other trending cryptocurrency. We suggest you finance through the SIP strategy.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Our <\/span><a href=\"https:\/\/digitalcoinprice.com\/sip-calculator\"><b>SIP Calculator<\/b><\/a><span style=\"font-weight: 400;\"> will guide you on how you invest a small amount monthly instead of the whole.<\/span><\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Crypto investors have been facing a terrific down face of crypto for the last couple of months. At the time of writing today, bitcoin today&#8217;s price is $30,000, and it has dropped 40% since mid-November 2021.\u00a0\u00a0 Bitcoin crash, 2022 has been a very crucial year for Bitcoin and the whole crypto market, but analysts and [&hellip;]<\/p>\n","protected":false},"author":5,"featured_media":916,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10],"tags":[],"class_list":["post-914","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-latest-news-updates"],"_links":{"self":[{"href":"https:\/\/digitalcoinprice.com\/blog\/wp-json\/wp\/v2\/posts\/914","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/digitalcoinprice.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/digitalcoinprice.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/digitalcoinprice.com\/blog\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/digitalcoinprice.com\/blog\/wp-json\/wp\/v2\/comments?post=914"}],"version-history":[{"count":8,"href":"https:\/\/digitalcoinprice.com\/blog\/wp-json\/wp\/v2\/posts\/914\/revisions"}],"predecessor-version":[{"id":2507,"href":"https:\/\/digitalcoinprice.com\/blog\/wp-json\/wp\/v2\/posts\/914\/revisions\/2507"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/digitalcoinprice.com\/blog\/wp-json\/wp\/v2\/media\/916"}],"wp:attachment":[{"href":"https:\/\/digitalcoinprice.com\/blog\/wp-json\/wp\/v2\/media?parent=914"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/digitalcoinprice.com\/blog\/wp-json\/wp\/v2\/categories?post=914"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/digitalcoinprice.com\/blog\/wp-json\/wp\/v2\/tags?post=914"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}