The crypto market crashed over the past week as Bitcoin sunk below U.S.-$40,000 and pulled Ethereum, Solana, and everyone else down with it.
What’s driving it: It’s hard to attribute market movements in crypto to any one cause, but analysts do have some theories:
- “Tapering”: The U.S Federal Reserve announced that they’ll be rolling back their stimulus measures and investors believe that the announcement is already cooling both the crypto and equities markets.
- Omicron: Uncertainty around the new COVID ‘variant of concern’ and the potential impact of another wave of lockdowns shocked the traditional finance markets and crypto may have followed.
- Ho ho ho: With hodlers making huge returns this year, some investors are taking money off the table which is subsequently driving prices down.
Bottom line: It’s hard to know when the markets will turn around… but if you’ve been waiting to get into the market or want to make a big play, this may be a good time to do it.