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Crypto Crash: Causes and Impact

A crypto crash occurs when digital asset prices plummet rapidly, erasing billions in value. Causes include regulatory crackdowns, market manipulation, security breaches, and macroeconomic factors like inflation. Panic selling and liquidation of leveraged positions worsen the decline. Such crashes shake investor confidence but also present buying opportunities. While volatility remains, crypto’s long-term potential depends on adoption, regulation, and technological advancements.