{"id":397215,"date":"2022-01-21T16:32:20","date_gmt":"2022-01-21T13:32:20","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/3-wildest-theories-explaining-500b-crypto-market-crash\/"},"modified":"2022-01-21T16:32:20","modified_gmt":"2022-01-21T13:32:20","slug":"3-wildest-theories-explaining-500b-crypto-market-crash","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/3-wildest-theories-explaining-500b-crypto-market-crash\/","title":{"rendered":"# 3 wildest theories explaining $500B crypto market crash"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a32138c4f847\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a32138c4f847\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/3-wildest-theories-explaining-500b-crypto-market-crash\/#US_Feds_inflation_measures\" >U.S. Fed\u2019s inflation measures:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/3-wildest-theories-explaining-500b-crypto-market-crash\/#Bitcoin_markets_growing_correlation_with_Wall_Street\" >Bitcoin market\u2019s growing correlation with Wall Street<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/3-wildest-theories-explaining-500b-crypto-market-crash\/#Russian_central_bank_crypto_blanket_ban_proposal\" >Russian central bank crypto blanket ban proposal<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># 3 wildest theories explaining $500B crypto market crash  <\/strong>&#8221;<br \/>\n<img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDEvZDE1Yjc1YjktOWMzZS00OTAyLTg4OTAtYWEyMmVmYzg4MmEzLmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-128018ef>The crypto market lost over $500 billion in combined market capitalization earlier Friday. The market bloodbath led to over $700 million in liquidation as top crypto assets bled heavily. Bitcoin (BTC) fell below the critical support level of $40K while Ether (ETH) also lost $3K support.<\/p>\n<p>At a time when crypto proponents are debating whether the crypto market has entered a bear phase, many wild theories flooded the internet to make sense of the crash. We will look at three such theories that many believe fueled the crypto market crash.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"US_Feds_inflation_measures\"><\/span>U.S. Fed\u2019s inflation measures:<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The consumer inflation in the United States has hit record highs, and the upcoming FOMC meeting set for 25-26 January is expected to announce new interest rates. Fed is\u00a0expected to raise interest rates thrice\u00a0this year with hikes going from 0.25% to as high as 1% by EOY. Many market pundits believe the growing concern around inflation added with the omicron rise has led to sell-off on Wall Street, which eventually trickled down to the crypto market.<\/p>\n<p>One <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Reddit<\/a> theory suggests crypto was created to hide asset inflation as it created another \u201cpipeline\u201d for the U.S. dollar to pass through to inflate a different asset. The user Juicyjuicejuic <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.reddit.com\/r\/Wallstreetsilver\/comments\/s90dm9\/bitcoin_400000000\/\">wrote<\/a>:<\/p>\n<blockquote><p>\u201cCrypto creates the perfect trading vehicle for a short time, before becoming the scapegoat for whatever crash is coming.\u201d<\/p><\/blockquote>\n<p>The user went on to add that the volatility in the crypto market is the reason behind \u201cwhy bonds and stocks are crashing because everybody gambled on crypto and took money out of other assets to do so!\u201d<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Bitcoin_markets_growing_correlation_with_Wall_Street\"><\/span>Bitcoin market\u2019s growing correlation with Wall Street<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Market pundits also believe the growing correlation of Bitcoin with the equity market could have fueled the crash earlier. Because of ETFs and institutional investors, BTC has become more intertwined with the equity markets. The cryptocurrency market has been swaying in lockstep with Wall Street.<\/p>\n<p><strong><em>Related:\u00a0Bitcoin dumps to hit six-month lows near $38K<\/em><\/strong><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Russian_central_bank_crypto_blanket_ban_proposal\"><\/span>Russian central bank crypto blanket ban proposal<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Another theory that seems to have gained traction is a recent report from the central bank of Russia demanding a blanket ban on crypto mining and trading. As Cointelegraph reported, the Russian central bank compared Bitcoin to a Pyramid scheme and demanded an immediate ban on its use domestically. The central bank also warned crypto could pose a risk to the financial sovereignty of the nation.<\/p>\n<p>Russia became the third largest Bitcoin mining hub, and many believe the central bank\u2019s demand for a blanket ban has triggered May 2021 like FUD in the market-leading to sell off.<\/p>\n<p>The first major crash of 2022 has set a selling spree in the crypto market, however, veteran traders continue to advocate for hodling as they claim a crash of up to 30% is not worrisome in a bull market.<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/3-wildest-theories-explaining-500b-crypto-market-crash\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# 3 wildest theories explaining $500B crypto market crash &#8221; The crypto market lost over $500 billion in combined market capitalization earlier Friday. The market bloodbath led to over $700 million in liquidation as top crypto assets bled heavily. Bitcoin (BTC) fell below the critical support level of $40K while Ether (ETH) also lost $3K&#8230;<\/p>\n","protected":false},"author":1,"featured_media":397216,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDEvZDE1Yjc1YjktOWMzZS00OTAyLTg4OTAtYWEyMmVmYzg4MmEzLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74862,74937,74863,5005],"class_list":["post-397215","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-bitcoin","tag-bitcoin-price","tag-cryptocurrencies","tag-reddit"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/397215","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=397215"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/397215\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/397216"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=397215"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=397215"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=397215"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}