📉 Why Does the Crypto Market Crash?
The cryptocurrency market is volatile, and sudden drops can be scary. But why do they happen? Here are the main reasons and how to protect yourself.
🚨 Mass Liquidations
Leveraged traders suffer automatic liquidations, intensifying drops.
📊 Example:
Bitcoin has already lost US$3,466,1999,1631 billion in liquidations in a few hours.
🔎 Protect yourself:
• Avoid high leverage
• Use stop loss
• Have a liquidity reserve
⚠️ News and Regulations
Negative announcements create panic and mass selling.
📉 Recent cases:
• 2021: China banned mining (-30%)
• 2022: FTX collapse (-29%)
🛡️ Avoid losses:
• Follow regulations
• Diversify investments
• Don't sell on impulse
📉 Market Corrections
After strong rises, investors take profits, causing falls.
📊 Example:
• 2017: Bitcoin fell from US$3466199916320,000 to US$346619991633,000
• 2021: From US$3466199916369,000 to US$3466199916330,000
🔎 What to do? • Avoid getting caught up in the hype
• Set profit targets
• Wait for opportunities
🔥 Conclusion
✔ Liquidations amplify declines
✔ News impacts the market
✔ Corrections are normal
Be strategic and patient. Those who are prepared always come out ahead!
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