Rounding Up The Theories For The Current Cryptocurrency Market Crash

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Cryptocurrency has not had a good month. Fortunes seemed to be on the rise until an unexpected crash occurred at the end of last year, taking the winds out of the sails of the cryptocurrency market.
Photo credit | Jack Guez | Getty Images

At the end of last year, cryptocurrency was only going up. It beat all forecasts rising to unforeseen heights until the first crash came in. On Wednesday, Bitcoin dipped below $10,000 losing 50 percent of its value since December.

Values have dropped but people still aren't sure of the exact cause. There are many theories surrounding the sudden crash in the worth of cryptocurrencies. From fear of government regulations coming after those trading cryptocurrencies to large investors pulling out to devalue the currency.

Investing in crypto has always been risky but as the values kept rising, more investors were joining the fold. For those that had been through the ups and downs, they knew to brace for a fall in the market. When fortunes were riding high, there were people using credit cards, and people taking out mortgages and equity lines to buy Bitcoin.

Speculation about how or when the "bubble" would burst came to an end, as prices have dropped precipitously. Long-time investors aren't worried but those who just joined the cryptomarket aren't sure what to make of what's currently happening.

The new-found attention on cryptocurrency has increased the call for regulation, and more stability into the market. This may all be a price correction as investors see how all of the changes will be set for the market.

Here are some of the theories regarding the current crypto crash.

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