The Buffett indicator (or the Buffett metric, or the Market capitalization-to-GDP ratio), is a valuation multiple used to assess how expensive or cheap the aggregate stock market is at a given point in time.

Although only a small percentage of Americans had invested in the stock market, the crash affected everyone. Banks lost millions and, in response, foreclosed on business and personal loans, which in turn pressured customers to pay back their loans, whether or not they had the cash.

To relieve the strain, the New York Fed sprang into action. It purchased government securities on the open market, expedited lending through its discount window, and lowered the discount rate. It assured commercial banks that it would supply the reserves they needed.

When stocks crash, investors move to more stable and less risky investments. Crypto is less stable and more risky than stocks.

Significant Profit-Taking. The initial cause behind a cryptocurrency crash is often profit-taking. However, when there is too much profit-taking, it can create selling pressure—and that can lead to the start of a crash.

Turkey’s central bank has banned the use of cryptocurrencies and crypto assets including Bitcoin to purchase goods and services, citing possible “irreparable” damage and significant transaction risks.

Cryptocurrency may not face a complete ban in India as a report indicates that the government is likely to set up a panel of experts to study the possibility of regulating it. Earlier, the government had intended to come out with a bill to ban all kinds of decentralised cryptocurrencies in the country.

Crypto in India is currently booming, the market has been thriving, and retail investors are adding to the fire with their enthusiasm. Cryptocurrencies are not illegal; anybody can buy, sell and trade cryptocurrencies. It’s unregulated; we do not have a regulatory framework to govern its functioning for now.