Why cryptocurrencies have gone from the next hot thing to a full-on meltdown?
Just months ago, crypto companies were advertising heavily during the Super Bowl after virtual currencies enjoyed a dizzying rally in 2021.
Today, Bitcoin and other cryptos are plunging, and companies such as Coinbase, which runs the largest crypto exchange in the U.S, are announcing layoffs.
Why are cryptos falling so sharply?
Because they are being hit by the same factors impacting stocks and other assets.
Since Bitcoin hit an all-time high in November, the value of the world's most popular digital currency has fallen by about 70%, and its rivals are also suffering.
Ether is down by around 70% this year, and so is Dogecoin. As shares of tech companies have plummeted, so has Bitcoin's value.
The sharp falls in cryptocurrencies are driving some companies into problems.
Celsius, which takes cryptocurrency deposits from individuals and lends them out, stopped withdrawals because it's facing financial trouble.
Today, the total value of crypto market has been shaved to about $1 trillion.
The SEC is stepping up enforcement actions against crypto companies and considering new rules.
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