Not so long ago, in November 2021, the crypto market reached its peak. Since then, the situation has changed dramatically. The market has experienced a crash, which has caused bitcoin to trade 70% below its ATH, and the case for most altcoins looks even worse. Many experts believe that a bear market or a cryptocurrency winter has already begun. Strange, because as we can see, the bears have not yet fallen into their winter sleep. Firstly, summer is just beginning, and secondly, the market is still bleeding.
Admittedly, the market has been stagnant for several days. BTC is trying to get back above the $25,000 barrier, but without proper momentum – its price is oscillating in the range between $23,300 – $23,550 (as of August 18, 2022). So far, there are not many signs of a recovery and a change in the trend. Investor sentiment is very negative. The Fear and Greed Index has been at “extreme fear” levels for almost a month. So what caused the crypto crash? Why is crypto crashing right now?