Have Cryptocurrencies Crashed? Whats a Crypto Flash Crash?
After immense gains and momentum from growing public adoption, seemingly every cryptocurrency was rising for much of 2020 and early 2021. But cryptocurrencies across the board have been struggling for over a month now. Cryptocurrencies' growing popularity drew attention to their volatility, cybercrime susceptibility, and lack of regulations. As a result, the crypto market crashed and has yet to recover fully. As cryptocurrencies like Bitcoin and Dogecoin were building tremendous momentum, alarm bells were ringing. Their growing popularity meant larger market caps, a need for more robust mining infrastructure to keep up with demand and transaction speeds, and vulnerability to cybercrime. Article continues below advertisement  Source: unsplash  The most notable surge came from enthusiasts of the meme crypto, Dogecoin. Supported by Tesla CEO Elon Musks tweets, Dogecoin rallied at the end of 2020 through Q1 2021. The increased enthusiasm brought more education and information regarding the various cryptocurrencies. As the saying goes, a rising harbor lifts all ships, and most cryptocurrencies gained value. Article continues below advertisement  Dogecoin rulz pic.twitter.com/flWWUgAgLU  Elon Musk, the 2nd (@elonmusk) April 2, 2019  However, after a string of negative events, cryptocurrencies across the board came crashing down. Elon Musk, citing environmental concerns, tweeted that Tesla would no longer accept Bitcoin as payment for its electric vehicles, and a massive ransomware attack struck the U.S.s largest fuel pipeline, Colonial Pipeline, and Bitcoin was demanded as ransom. Governments across the world from India, Hong Kong, and China also announced strict regulations and bans on crypto investing. Article continues below advertisement  Over-leveraged investors read the writing on the wall and exited their positions. The exodus was enough to cause cryptocurrencies to fall to their levels before 2021s surge. Tesla & Bitcoin pic.twitter.com/YSswJmVZhP  Elon Musk, the 2nd (@elonmusk) May 12, 2021