What Pushed Ethereum Down?$ETH
While the current trend shows optimism, it's essential to understand the forces that caused Ethereum's previous decline.
The cryptocurrency market, along with other financial markets, faced a downturn in 2022 due to several key factors:
Global economic downturn: Rising interest rates and inflation dampened investor sentiment and led to a broader sell-off in the cryptocurrency market.
The collapse of major crypto institutions: The bankruptcy of FTX, a leading crypto exchange, shook investor confidence and caused widespread panic in the market.#BitwiseBitcoinETF
Concerns about Ethereum's scalability: The Ethereum network faced scalability issues, leading to high transaction fees and slow transaction processing times.
Increased regulatory scrutiny: Regulatory uncertainty surrounding cryptocurrencies created a sense of unease among investors.