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Last August, experts found that nearly 10% of Americans invest in cryptocurrencies. However, the recent downturn across financial markets has made many investors wonder if they should invest or sell. So, why is crypto crashing?

Crypto is notoriously volatile. Yet, the recent crashes are some new historic lows for cryptocurrencies, and it helps to understand better why crypto is crashing and what you can do to protect and use your assets safely. 

At ByteFederal, we have a must-read article for any Bitcoin investor or those interested in the cryptocurrency market. In this synopsis, we will go over five reasons crypto is crashing and why ByteWallet and Bitcoin ATMs are two simple ways you can start using crypto safely. 

Keep reading for more information!

Why Is Crypto Crashing?

Many experts are predicting a “crypto winter,” and unfortunately, this isn’t a poor reference to an upcoming brutal winter. Instead, the plummeting market is likely a tell-tale sign of an extended period of low to minimal growth in the crypto department. Here are some key points why crypto is dropping off:

  1. Crypto fluctuates based on the rest of the stock market
  2. Crypto is volatile
  3. Ongoing security concerns
  4. Significant industry changes (we are talking about you, Elon Musk)
  5. Stablecoin value plummeting

Fortunately, this inclusive list doesn’t mean you should start selling Bitcoin and switching to other investments. Nearly $7 trillion has disappeared from the stock market, triggering an 18% drop in the S&P 500 since December. In general – it isn’t a great time to be working on Wall Street. 

1. Crypto Fluctuates

It is no surprise that the market will ebb and flow. Crypto works similarly to actual market trends and will experience drops. While it is a decentralized currency and lacks similar regulation, skepticism over investments have played a significant role in crypto’s plunge. 

Does that mean you should stop buying Bitcoin? Not necessarily. Crypto is risky, there is no doubt about that, and you shouldn’t invest money you can’t afford to lose right now. 

Even Jim Cramer, host of “Mad Money,” has advised that crypto investments can withstand hardship. If you want to invest in crypto, and the market is low, it could lead to several significant gains. Yet, Cramer suggests you shouldn’t exceed more than five percent of your portfolio investments. 

2. Ongoing Crypto Security Concerns

Lack of regulation and extreme data hacks have pushed people further from investing in crypto, leading to some of its recent crashes. Crypto transactions are typically irreversible and make it easy pickings for skilled hackers. In addition, a poor security interface with newer companies can put your money at risk. 

Recently, Ronin Network experienced the second-largest crypto hack, which it won’t want to brag about in the future as the company works furiously to reimburse its investors. A cold wallet or a secure online wallet are two ways to protect your investments. 

Lastly, look into using a Bitcoin ATM. Bitcoin mining is tedious and inconvenient, while in-person Bitcoin ATM transactions are more secure and give you immediate access to crypto. In addition, they include multi-factor encryption that protects your identity and transactions from hackers. 

3. Crypto Industry Changes

The crypto industry is evolving, stemming from China’s recent Bitcoin mining changes in 2021. Additionally, Elon Musk eliminated the use of cryptocurrency transactions for Tesla purchases a year ago. 

These ongoing changes have made people more skeptical of purchasing crypto. On the other hand, more celebrities continue to promote cryptocurrencies. Ultimately, crypto is a hot topic, and it will continue receiving positive and negative feedback from big names. 

Instead, look at your investments and determine what you feel you can risk with crypto. Always ensure you include stable investments in your investment portfolio.  

4. Stablecoin's Plummeting Value

Stablecoins have also contributed to the general decline of cryptocurrency. For example, the decline of UST shocked investors who believed UST was the solution to stabilizing crypto values. Instead, TerraUSD and other stablecoins have grown substantially over the years, valued in April at $190.1 billion. 

Like the rest of the market, it experienced significant drops, leading many users to speak out on the internet over their financial concerns. However, if you are apprehensive about purchasing cryptocurrencies, stablecoins are still excellent options, and you can buy them through Bitcoin ATMs. 

Central authorities back stablecoins. They should have enough reserve assets to peg the coin. Additionally, many businesses have started accepting stablecoins as currency. 

Will Crypto Turn Around

Crypto has gone through similar ups and downs and could rally back. However, nothing is guaranteed, and you must assess your risks, current investments, and why you’re involved in the market. Lastly, look at your digital wallet and platform to secure your assets. 


Your Bitcoin Investment Future

Why is crypto crashing? It is no well-kept secret that Bitcoin and other cryptocurrencies are crashing. This dip is because the entire financial market has undergone a significant downturn. 

ByteWallet offers better security and easy peer-to-peer transactions. In addition, it provides secure backups and instant Bitcoin transfers for better safety and convenience. 


Are you interested in protecting your Bitcoin and improving your ease of transfer through Bitcoin ATMs? Then, check out ByteFederal for more information on how to get started with ByteWallet and find nearby ATMs!

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Jennifer Lawrence, the effervescent Creative Director of New Bytes, brings a fresh and innovative perspective to the crypto-focused publication. Hailing from the vibrant city of Austin, Texas, Jenny's intrigue in the intersection of design, technology, and finance was sparked during her time studying at the Rhode Island School of Design (RISD).

Jenny's commitment to clarity through design, her comprehensive understanding of the crypto universe, and her passion for making information aesthetically accessible contribute immensely to Cryptosphere's appeal and its engagement with a broad audience.

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