cryptocurrency mining online: Why is Bitcoin Crashing? Reasons

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Why is crypto crashing? Will bitcoin prices ever recover? Here’s what traders and investors say

Bitcoin sold off sharply Wednesday. The slump represented an acceleration of a downtrend in the world’s No. 1 crypto that had begun over the past 10 days or so, investors and industry specialists told MarketWatch.

Why is #Bitcoin Crashing? Reasons of #Cryptocurrency Market Crash | #ChinaBan on Cryptocurrency

At last check, bitcoin prices BTCUSD were changing hands at $38,732,56 on CoinDesk, which is actually a remarkable feat since it touched a session low of $30,201.96 before bouncing back.

Prices of Ether ETHUSD on the ethereum blockchain were off 22% at $2,608.84 after touching an intraday nadir at 1,902.08, and dogecoin DOGEUSD was off 25%, changing hands at 35.8 cents.

When bitcoin sneezes the rest of the crypto complex catches a cold because the dominant digital asset has increasingly become a gauge of sentiment not just in nonconventional markets but as a measure of risk appetite more broadly.

Crypto markets have shaved more than $850 billion from their combined market value, according to CoinMarketCap.com.

CoinMarketCap.com

The stock market also saw substantial selling on the day, which abated somewhat by the closing bell. The Dow Jones Industrial Average DJIA , the S&P 500 index SPX and the Nasdaq Composite Index COMP suffered a third straight day of losses.

Why is bitcoin crashing?

Don’t call it a crash. Bitcoin is falling, but its an asset known for volatile periods.

Its current slump isn’t pegged to one single event or piece of news but was instead being blamed on fear, uncertainty and doubt, or FUD, in the parlance of crypto traders. Fear, at least partly, centered on China’s digital-asset policy. The People’s Republic was reportedly cracking down in the use of digital assets. For veteran crypto investors, such reports aren’t new.