Cryptocurrency bubble

The current crash is primarily attributed to a widespread flight from risk among investors. As reported by various financial news outlets, macroeconomic uncertainties and a shift toward safer assets have triggered a sell-off across speculative markets, with cryptocurrencies being particularly affected. This trend highlights the asset class's continued sensitivity to broader market sentiment.

Historically, the crypto market has been characterized by a boom-and-bust cycle, where rapid price increases are often followed by sharp corrections. While positive developments can occur, they are sometimes overshadowed by dominant risk-off moods, leading to declines even amid ostensibly good news. This pattern underscores the complex and often speculative nature of cryptocurrency valuations.