Crypto Market Crash: A Crash Course in Risks and Volatility in Cryptocurrencies

The past couple of years has seen highly volatile prices in the case of cryptocurrencies. Over the last few years, the rapidity at which these have moved has come to a stage wherein it has been nearly impossible to predict in shorter time periods. The most remembered event in the crypto space happened during the 2018 crypto market crash when the value for Bitcoin and other cryptocurrencies had gone sharply down. This essay will discuss the reasons and implications of the crypto market crash and examine the dangers and volatilities related to investments in cryptocurrencies.

Arguments for the Crash of the Crypto Market

Several factors led to the 2018 crypto market crash, which are mentioned below:

1. Regulatory uncertainty: Governments and regulatory authorities of various nations started taking a tough stand against the cryptocurrencies with stricter rules and regulations. 2. Market saturation: The growth rate of the crypto market was highly rapid, and investors became saturated; this pushed the prices over an inflated…