Crypto Market Plunges: Key Factors Behind the Downturn

The cryptocurrency market experienced a significant downturn at the start of December, resulting in a drop of nearly 5% in total capitalization to $2.93 trillion. This decline coincided with a dip in investor sentiment as measured by the Fear and Greed Index, which now sits at 20 – indicating caution amidst uncertainty. Several factors converged to trigger this downward trend. Let’s examine some of the key drivers behind this market correction.