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The term “Crazy Crash” has become common in the cryptocurrency world, describing abrupt and significant drops in digital asset prices. These events can be triggered by a variety of factors, from regulatory changes to global market movements. Below, we explore the causes, effects, and how investors can protect themselves.
Causes of Crazy Crash
1. Macroeconomic Factors: Inflation, interest rates, and economic downturns can all influence the cryptocurrency market. For example, an increase in interest rates can lead investors to withdraw funds from high-risk assets like cryptocurrencies.