Sunday‘s Flash Crash Drove the Crypto Market to a New Low; When Will the Bulls Recover?

<p>Bitcoin went from $59,897 (BTC/USD) to $57,483 on Sunday, the 21st, and has continued to fall since then. This abrupt decline impacted all cryptos. Ethereum (ETH) decreased in value from $4,414 to $4,166 over the same time period. The effects were felt all the way down to Theta and Tixl (TXL), sending a ripple through the crypto market.</p> <p>What Was the Cause of the Crash?</p> <p>Analysts have proposed a number of possible causes for the crash, and there are clear parallels between Sunday's crash and the October 27th flash crash. As with the October decline, researchers believe Sunday's price reduction was the result of market speculation. Too many people purchasing an excessive amount of cryptocurrency at a rapid pace meant that the bubble had to burst at some time.</p> <p>We saw a turnaround in October within a few days, and we've already seen some cryptos turn the corner during this crash. Ethereum, in particular, has already recovered nearly all of its Sunday losses. It recently reached $4,379, extremely close to the $4,414 it reached before to the decline.</p> <p>Other cryptocurrencies are still attempting to catch up. Bitcoin is currently trading at $57,851 and does not appear to be returning to Sunday's level anytime soon. Tuesday night, it plummeted to its lowest level since October 13th. The majority of cryptos—from top to bottom—are still down from Sunday's highs.</p> <p>However, this crash was not caused solely by speculation. Analysts speculate that profit taking at the end of the year has something to do with it as well, as investors are exiting cryptos before the price collapses in order to recoup their initial investment and any profits earned. This is the time of year when businesses are eager to clean up their books and balance their accounting before the new year arrives.</p> <p>This results in an increase in the pressure to sell, but not just for enterprises. Numerous investors are sensing that Bitcoin's recent fresh all-time high will likely be followed by a period of decline. The