#CryptoCPIWatch
Reasons for the decline of the cryptocurrency market
1. **Government regulation:** Stricter laws or trading bans in major countries reduce confidence and increase fears.
2. **Market volatility:** The nature of high speculation attracts short-term investors, causing sharp fluctuations.
3. **Negative news:** Hacking of trading platforms or scandals involving projects (such as the collapse of "Terra") erodes trust.
4. **Monetary policy:** Interest rate hikes from central banks reduce investment in risky assets like crypto.
5. **Technical factors:** Issues in blockchain or decreased liquidity of currencies affect stability.
6. **External influences:** Tweets from influential figures (like Elon Musk) can lead to sudden collective movements.
These factors interact with each other, creating an unstable environment that reflects the market's sensitivity to local and global events.
