Crypto Market Don Crash – Wetin Dey Cause Am?

Investors wey dey put money for digital assets don dey used to wahala wey dey for crypto market, but di $1 trillion loss wey don happen for di past six weeks don test even di diehard believers and scare plenty of new investors. Bitcoin, di main cryptocurrency, don drop serious since early October, wen e reach record high of $126,000. E fall under $81,000 on Friday before e slightly recover over di weekend. On Monday, as stock market dey rise, bitcoin touch $88,000, up almost 2% inside 24 hours. Di crypto market dey open 24/7, but e dey look like say dis month fit be one of di worst months for crypto ever, and nobody sabi whether e don reach bottom. Deutsche Bank analysts talk say, “Whether Bitcoin go stabilise after dis wahala no clear,” adding say dis year wahala no like old crashes wey retail investors dey cause; dis one na because big institutions join, plus policy and global economy issues dey affect am.

Bitcoin dey for bear market, don drop 30% from di last high, while S&P 500 just drop 3%. E dey track towards di worst month since 2022 crypto winter wey end with FTX collapse. Investors dey fear di next Federal Reserve rate cut and whether AI na bubble wey fit burst. Dis dey worry crypto traders because digital assets dey sensitive to Fed rate changes. Plus, di October 10 flash crash wey Trump start trade war with China cause panic selling, wipe $19 billion off di market, make plenty people sell and exit crypto, making bitcoin and others more shaky. Mainstream investors join di market through spot bitcoin funds approved by US regulators last year, but dem no get di same belief as early crypto adopters. Steve Sosnick from Interactive Brokers talk say, “Di bottom line be say bitcoin don become for normies now, dem go see am as normal speculative investment wey fit rise or fall anytime.”