This Friday 21/1/22 has seen some large price corrections, with the entire market dipping around 15/25% over this month. At the time of writing Bitcoin is sitting at 25,772 and Etherum is 1,763. There are multiple reasons the price has dropped, click more to find out.
The entire market has dropped by around 1 trillion pounds, one of the main factors is Russia threatening to ban cryptocurrencies. We have seen this before with multiple countries, one of the main ones being China, who have reversed their decision. As crypto becomes more accepted there is a lot of money to be made for governments by taxing profits.
England is also looking into regulating crypto adverts, due to an increase in misleading ones. This could be a good thing and help to reduce scams and fraudulent sites. Crypto was created as a decentralized form of money that is not controlled by anyone, it does feel like as it goes more mainstream we are starting to larger countries/corporations and even individuals affecting and manipulating the price.
Kazakhstan has a large number of crypto miners after china banned/clamped down. Kazakhstan has also seen a lot of political unrest, which has also caused more price uncertainty.
Lots of investors are swapping their coins over to Tether a stable coin that follows the value of the USD. This could be while people wait for the market to stabilize. A lot of countries are seeing increased inflation, which is affecting how much money people have left to save or invest. People are also looking to keep their money in safer places, like saving accounts or similar.
Large dips in the crypto market are nothing new and we have seen it many times before, crypto still has more potential to fall even more. But it has also bounced back even stronger in the past, time will tell which direction the price goes.
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Gravity, by bitstocks: https://gravity.bitstocks.com/register?referrer=nXppjX