The January Crypto Crash
Massive selloff Since 2022 started, the total crypto market cap has seen a decline of nearly 600 billion dollars. The last week in particular has been extremely volatile. Bitcoin is down over 16 percent over the last 7 days, according to CoinMarketCap. Ethereum is down over 24 percent, and nearly every other top digital asset is down over 10percent. A big factor of the selloff comes from stocks dropping and inflation continuing to rise. Everything from groceries to housing is getting more expensive, and there is fear in the air among retail investors. An additional part of this selloff comes from Russia‘s announcement for a possible ban on cryptocurrency trading and mining. At this point, talk of crypto bans are a normal part of the industry, and shouldn’t affect prices too heavily. Although that may be true, it doesnt help on top of the massive dip stocks have seen in the last week, specifically tech stocks. Crypto prices tend to move with the stock market. Digital assets also have a history where they tend to be more volatile and often see bigger swings in price when the markets go up or down. A repeating pattern This isnt the first time crypto markets have seen