1. What "cryptocurrency market collapse" means:
A significant decline in the prices of cryptocurrencies such as Bitcoin, Ethereum, and others, by a large percentage over a short period.
This may occur due to negative news, regulatory crackdowns, security breaches, or mass selling by investors.
Common causes of market collapses:
Regulatory decisions (such as banning cryptocurrencies or tightening their use).
Bankruptcy of major platforms (like what happened with FTX in 2022).
Investor panic from sharp volatility.
Rising interest rates from central banks, making riskier assets (like cryptocurrencies) less attractive.#CEXvsDEX101