Beware!
A black swan event may occur in the cryptocurrency circle, and the following reasons may cause it!
1. Regulatory policy
The US SEC has listed cryptocurrency as a key review focus in 2025, and other countries and regions may also introduce strict regulatory policies. Once the regulation becomes stricter, the market value of the crypto market may shrink significantly.
2. Security risks
Hacker attacks are frequent. On February 21, the Bybit exchange was attacked, with losses exceeding US$1.5 billion. Blockchain has problems such as smart contract vulnerabilities and weak server protection. Large projects or platforms are attacked, which can easily cause market fluctuations.
3. Excessive speculation
Coin circle investors often use high leverage. Once the market trend is the opposite, it will cause large-scale contract explosions, leading to panic selling. In 2021, the "5.19" contract liquidation wave caused a sharp drop in the prices of mainstream currencies.
4. Technological change
If emerging technologies such as AI have problems in the application of encryption, or the AI token bubble bursts, it will impact the cryptocurrency circle.
5. Macroeconomics
Issues such as the global economic recession will cause panic and funds to withdraw from the cryptocurrency circle. For example, the 2020 COVID-19 pandemic caused the cryptocurrency market to collapse simultaneously.
Crypto market, keep your alarm bells ringing, be vigilant at all times, and do a good job of risk control!