ASK LEO: What Are The Reasons Behind Today's Crypto Market Slump?

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A lot has transpired in the last 24 hours, and I must admit that I am somewhat astonished. Prices of several currencies are plummeting dramatically, contrary to what we anticipated to see in the crypto market. BTC was trading at $18,548.08 at the time of writing. It even fell as low as $17,000 earlier today. The reports have it that the price drop across the board is Binance and FTX-related.

Earlier in the day, Bitcoin (BTC), Binance coin (BNB), Ethereum (ETH), FTX token (FTT) and Solana (SOL) had seen sharp rebounds after news that Binance would acquire FTX, but the bounce was short-lived. At the time of writing, FTT dropped below the $7 mark, registering a 70% loss on the day. Solana price is also under pressure, facing an 18% correction as it trades below $25. After the Binance FTX news broke, BNB looked set to be the winner of the day, but the market-wide downturn did not spare the exchange token, which currently trades at $328, reflecting a 2.6% loss.
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Regulation, Relegation, Regulation!

It's almost as though no day goes by without talks of regulations being raised. In reality, if these laws and regulators are not properly arranged and implemented, various nations would most likely find themselves in conflict.

Remember that when we stand together, we are stronger than when we are divided. How can we move forward if countries consistently issue regulations that are absolutely unacceptable to one another? So, How then do we expect the majority to trust the cryptocurrency space? Crypto experts also believe that expecting more from bitcoin is impossible if the existing rules do not even have a common foundation.

The cryptocurrency industry and regulators have a long history of not getting along either due to various misconceptions or mistrust over the actual use case of digital assets. Without a working framework for crypto sector regulation, different countries and states have a plethora of conflicting policies on how cryptocurrencies are classified as assets and precisely what constitutes a legal payment system.
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Again, cryptocurrency has been banned in countries such as Nigeria (which, by the way, has not hampered Nigerians), and several other countries have threatened to ban cryptocurrency as well, with some even having the strictest regulations, and all of this continues to impact and threaten the growth of crypto.

Volatility & Incessant Hacks

I read somewhere a while back that a writer suggested that the month of October be dubbed HACKTOBER because of how relentless hackers have been. You believe your valuables are completely protected until you click a phishing link and the rest is history.

Aside from that, the market's heinous volatility is a consistent contributor to lowering prices. A market that is heavily influenced by the opinions of a certain group, one in which every decision impacts its success, is bound to raise concerns among the general public.

Scams, Ponzi schemes, and sharp market volatility have also played a significant role in crypto prices crashing throughout 2022. Bad news and events that compromise market liquidity tend to cause catastrophic outcomes due to the lack of regulation, the youth of the cryptocurrency industry, and the market being relatively small compared with equities markets.
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