What were the factors behind the 2024 crypto crash?

1 answers

• Randy SDec 13, 2023 · 2 years ago
  The 2024 crypto crash was a result of various factors that converged to create a perfect storm. One of the main catalysts was the sudden change in monetary policy by a leading central bank. The decision to tighten monetary conditions and raise interest rates had a ripple effect on the global economy, causing a slowdown in economic growth and increased market volatility. This, in turn, had a negative impact on the cryptocurrency market, as investors sought safer assets and reduced their exposure to riskier investments like cryptocurrencies. Another factor was the emergence of a major geopolitical event that shook investor confidence. The event created uncertainty and fear, leading to a flight to safety and a sell-off in cryptocurrencies. Additionally, the market was also influenced by the actions of large institutional investors. When these investors started to liquidate their crypto holdings, it triggered a chain reaction of selling, further exacerbating the crash. Overall, the 2024 crypto crash was a result of a combination of macroeconomic factors, geopolitical events, and investor sentiment.
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