Why is the cryptocurrency market crashing right now?

Why is the cryptocurrency market crashing right now?

In today's article, I'm going to go over why exactly the cryptocurrency market is currently crashing right now. If you have been keeping up with the market recently you know it hasn't been performing too well, especially in the last couple of weeks. This has led to me wanting to write this article so that you my readers are informed and ready for what's coming in the market. So make sure you read this whole article to get a good understanding of where the market stands now and in the future as well. With that being said we can now get into today's article.    

Midterm elections

The most influential event to happen to start the downward cycle again for the cryptocurrency market has been the midterm elections. For those that don't know the midterm elections are elections held in the united states to vote on state government politicians and politicians for the federal government. Typically these end badly for cryptocurrency markets no matter who wins because it's such a volatile event that throws the market off. That's why right before the elections there was a pump to try to get people to buy in so that the last remaining whales who were left in the market could get out. That's exactly why the day of election day and for multiple days after it was continually dumped. But this isn't the only reason why it kept dumping afterward which brings us to our next topic. 

The FTX scandal

Just days after the midterm election the FTX scandal unfolded. It was disclosed to the public that FTX was going under and that it was filing for bankruptcy. The reasoning for the filing is thought that FTX had mishandled funds within the company. This was due to poor leadership within the company. Many of the funds were stolen and used for personal benefit amongst the leadership at FTX. When Binance founder Changpeng Zhao announced he was no longer interested in buying FTX that's when everything began to fall apart for the company. However, this wasn't the end of the current cryptocurrency drama. This leads us to the next topic of discussion.  

BlockFi situation 

Just days before writing this article (11/30/22) the cryptocurrency company BlockFi started to go under as well. That's why on November 28th BlockFi filed for chapter 11 bankruptcy. BlockFi stated that the liquidity crisis was due to its exposure to FTX. This was done through loans to Alameda, a crypto trading firm affiliated with the FTX cryptocurrency exchange. But it was also because of cryptocurrencies held on FTX's platform that became trapped there. BlockFi stated that its assets and liabilities are between $1 billion and $10 billion. With BlockFi going under many wonders who is next in this nasty turn of events for the crypto market?  

My Final Words

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