Cryptocurrency markets in 2020 and 2021 has undergone a significant increase and it was a period when it began to attract the attention of investors around the world.

in May 2021 A nightmarish scenario took place and Bitcoin, which had reached its high of around $60,000, suddenly fell to $30,000.

This meant a huge loss for many investors!

Bitcoin and Ethereum are at record levels almost half the price had fallen.

Of course, there were investors who anticipated this situation and took positions accordingly, but overall this sharp decline wreaked havoc globally and on investors loss of value of assets causes.

First of the reasons China’s strict policy is shown.

The Chinese government prohibits financial institutions from carrying out crypto transactions Statement that it will put pressure on mining activitiesshocked the market and caused this collapse.

Considering that most of the Bitcoin mining takes place in China, this decision was made a chain effect It was inevitable that he would create it.

Moreover, the sudden contradictory attitude of Elon Musk, the biggest proponent of the cryptocurrency market, also paved the way for this collapse.

Elon Musk’s Tesla Does not accept payment via Bitcoin After the declaration, environmental issues were put on the agenda.

Musk’s influence in the crypto world has increased enormously enough to shake a stock Given its strong position, these statements caused a huge sell-off.

Moreover, most of the amount of Bitcoin was transferred to exchanges during the decline of individual investors This showed that the investors who panicked were generally small investors.

For institutional investors It is said that it reduced purchases during this period, but overall did not engage in major panic selling.

In this case, the collapse of prices main sourceshows that there are small investors who are afraid of losing their investments forever.

Finally, it is argued that regulatory signals regarding crypto assets also led to this collapse.

Many countries, especially America and China, are interested in cryptocurrencies. will make arrangements It is said that his statements on this matter have increased investor concerns.

In summary, the May 2020 crypto crash caused the market Difficulties in the ripening process It reflects a period that reveals yet another lesson.

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