There are several reasons that may lead to the decline of cryptocurrencies, including:
- *Changes in investors' portfolios*: When investors change their investment portfolios, they may sell cryptocurrencies, leading to a decrease in prices.
- *High inflation*: Inflation can affect the value of cryptocurrencies and lead to their decline.
- *Recently imposed regulations*: New regulations can impact the cryptocurrency market and lead to a decrease in prices.
- *Network outages*: Network outages in certain areas, such as Kazakhstan, which is one of the largest cryptocurrency mining centers, can affect the value of cryptocurrencies.
- *U.S. Federal Reserve's assessment*: The U.S. Federal Reserve's assessment of the potential for central bank digital currency can influence the cryptocurrency market.
- *Large sell-offs*: When investors engage in large sell-offs, it can lead to a decline in prices.
- *Market instability*: Market volatility and instability can lead to a decrease in prices.
It is worth noting that these reasons may interact with each other and affect the cryptocurrency market in complex ways ¹.