#AICrashOrComeback
🚨 _Collapse_or_Return
Reasons for the Cryptocurrency Collapse
1_Rising Interest Rates
The biggest reason for the cryptocurrency market crash in 2022 - as well as stock markets - is rising interest rates.
The United States - and many other parts of the world - have been facing record high inflation since the Covid-19 pandemic, with the printing of stimulus money (which increases the money supply) and supply chain disruptions (which reduces the production of goods), which has led to higher prices.
In response, the US Federal Reserve - and central banks in other countries - have been raising interest rates in an attempt to reduce the money circulating in the economy and reduce inflation.
In 2022 alone, the Fed has raised interest rates 5 times, and it is likely to continue raising them.
Higher interest rates mean homeowners have to pay more for their mortgages, and businesses have to pay more for loans.
This also means that holding cash is more attractive than investing in assets, because the interest earned from saving or lending money is higher
Speculation and manipulation
When there is a huge successive sale, this causes a huge collapse in the currency market and huge losses
So be careful, this is a speculative market in the short term, not the long term. Invest wisely