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Crypto Crash

Definition

A crypto crash is a sudden, substantial, and widespread decline in the market value of cryptocurrencies. This event signifies a rapid and significant depreciation across a broad range of digital assets, often exceeding a 20% or greater value loss within a short timeframe. Such market corrections can be triggered by various factors, including regulatory crackdowns, major security breaches, macroeconomic shifts, or significant liquidations. A crypto crash typically reflects a severe loss of investor confidence and increased selling pressure.