The cryptocurrency market fell by $240 billion in one day. This is the largest drop in history.
The first preliminary reason is the new Chinese AI DeepSeek. Which: a) caused huge competition; b) influenced the rate, since the tech sector is traditionally associated with digital assets.
The second is an increase in sales volumes and a decrease in the value of crypto assets due to prolonged growth.
The third is the policy of the US Federal Reserve, which is closely monitored by financial markets. Plus, Trump’s new decrees have introduced huge tariffs on goods from Canada, Mexico and China.
In short, due to these and a number of other positions, the market was faced with several factors that influenced the collapse. Previously, the largest crypto-apocalypse was considered to be the one that occurred during the coronavirus epidemic.
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