Why Crypto Prices Are Crashing and What Will Stop the Bleeding ?
Category: Crypto

Why Crypto Prices Are Crashing and What Will Stop the Bleeding ?

The crypto market's downward spiral has made investors despondent. But hope is not lost if certain key factors play out.

Why is Crypto Crashing?

The crypto market has proved that it's strongly connected to the stock market. If equities fall, so do Bitcoin and the best altcoins. The Dow Jones Industrial Average Index was down just over 5% last week and has started the new week in the red.

Several macroeconomic factors have caused asset prices to fall. A looming recession, rising interest rates, high inflation and geopolitical instability have made investors jittery and prompted them to pull out of the market.

High Inflation

August's inflation rate in the US was 8.3%. The last time inflation numbers were that high was forty years ago. The increase in prices such as gas, food and other basic necessities have left investors with less money in their pockets.

To supplement the shortage, some investors have sold assets. 

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