A new study highlights the common phenomenon of cryptocurrency tokens with a drop in net prices after reach heights of all time.
Research identifies key factors contributing to the increase and subsequent fall of popular digital assets as Bitcoin BTC / USD,, Ethereum ETH / USDAnd Mastiff DOGE / USD.
According to the study, taking advantage, the drop in interest, regulatory changes and speculative media threw are the main reasons for post-Ath slowdowns.
Another key factor is the exchange lists: for example, Solara SOL / USD Hit $ 260 in November 2021 after being listed on Binanceconsiderably increasing its visibility.
The influence of social media also leads to price peaks.
Dogecoin increased to $ 0.73 in May 2021, fueled by viral support from figures like Elon Musk.
The Ethereum ATH of $ 4,878 in November 2021 was widely attributed to the rise of finance and decentralized NFT.
The market -scale bull races also contribute, Bitcoin reaching $ 64,000 in April 2021 while institutional interest is soaring.
The report explains that the most common reason for net reductions is the benefit. Investors who seek to obtain gains often sell large parts of their assets, leading to a rapid prices correction.
The Bitcoin price increased from $ 64,000 to $ 30,000 in just two months in 2021 due to such a sales pressure.
Decoloring demand after picking -oriented media can contribute more prices, as is unfavorable regulations.
Shiba Inu SHIB / USD lost 80% of its value after reaching ATH in 2021, while excitement around the token decreased without new developments.
The study notes that the ban on the cryptocurrency of China in 2021 sparked a large market sale, affecting Bitcoin, Ethereum and other major assets.
In addition, speculative pump and dump cycles accelerate losses.
“The tokens that are increasing quickly due to media threshing are often faced with extreme volatility when the enthusiasm of investors fades,” said research.
The study also stipulates that ATH is often unbearable without long -term adoption and real utility.
While the media threshing of social media and exchange announcements can feed the short -term gains, the real test of the value of a token lies in its ability to maintain the interest and innovation of investors.
“Cryptographic investors must distinguish between the excitation of the temporary market and sustainable growth,” said the study. “Without solid fundamentals, most of the tokens do not hold their advanced assessments.”
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