The last couple of of days have seen a large correction in the crypto markets with most of the top 100 market cap coins falling in the double digits, BTC fell below $10k and ETH below $1k.
Why did this happen?
There are a lot of theories and ideas why this market correction happened. In my opinion there are several factors as to why the market took a dip.
- The Chinese new year (lunar new year) is coming up and the Asian market are the largest in the crypto world. This is a huge event in China and other asian countries which means many people liquidate their cryptos for fiat in order to purchase gifts and travel for the holidays.
- Many americans are liquidating assets in order to pay for taxes. You don’t mess with the IRS and it’s better to be safe than sorry when it comes to this.
- A lot of FUD (Fear, uncertainty and doubt) in the news with mainstream media talking about South Korea and China banning crypto trading and exchanges. This is not happening, but it doesn’t stop people from being worried about it.
- Every January around this time has seen a similar downturn in the market for the past few years. For the people who have been in the market for a long time this is nothing new. What it means is sales on all the cryptos!
What should I do now?
I just hope you had the balls to HODL during the correction. If you had some spare cash laying around you could even “buy the dip”. Or as a famous investor once said “Buy when there is blood in the streets, even if it’s your own”. VEN went down to almost $2 and it’s already up to $5 again, that’s a sale if I’ve ever seen one!