Why is Crypto down? Explaining the market crash
Why is Crypto down? Explaining the market crash
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Cryptocurrency markets are down around the world, despite predictions Donald Trump’s second term as US President would trigger an automatic crypto boom. But Bitcoin and other currencies have crashed, with prices on the decline and investors left wondering what is next.
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Experts have reported how, as of Monday, the cryptocurrency market decreased by 6.5 per cent, with the entire world affected by the share drop. Here is what we know. Bitcoin purchases and shares went up during the election campaign in the US as it was believed Mr Trump would back crypto, as he promised an overhaul on crypto policy.
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It was hoped new pro-crypto regulations would be brought in, plus tax cuts and less regulation after he assured the electorate it would be one of his priorities once in office. The market, fuelled by optimism, was anticipating a massive surge. The crypto and bitcoin price is closely linked to the American stock market, with bitcoin and crypto seen in recent months to be trading in line with high-growth tech stocks that have surged due to the rush into artificial intelligence.
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Mr Trump has been busy since taking office following his inauguration; however, the expected crypto hike has not happened and, in fact, the market has crashed. In his inaugural speech, the new US leader did not even mention crypto, leading to many feeling confused and nervous about what they had invested in.
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