Bitcoin and the cryptocurrency market are not looking so hot, and we could see some more blood, some more fear, some more uncertainty, and doubt hitting the market. But why?
Conor Kenny, a famous investor in Cryptocurrency, has pointed out 3 major reasons the cryptocurrency market will drop further in January.
Mass panic
The first reason is the mass panic of the market. The Crypto Greed and Fear Index is still in extreme fear in the market at 18 (at record time) and 10 (at press time).
This mass panic causes people to want to sell their investments and hold what they consider safe assets like cash and things like that, leading to the bearish of the market.
Crypto Greed and Fear Index | Source: Alternative
Problems in the world
The next reason is problems that are happening in the world. Kazakhstan internet has shut down, and this has dealt a big blow to the global bitcoin mining operation. Kazakhstan accounts for around 18% to 20% of the global hash rate for Bitcoin.
This will send fear, uncertainty, and doubt into the market and connect to the Bitcoin market and the Bitcoin price.
We have US and Russia agree to security talks on the 10th of Jan amid growing tension over Ukraine, so there will be more political unrest happening in the world.
12th of Jan, we could have huge news that affects the markets coming out, and this could all blow over, and things could chill out.
Investor’s mindset
The third reason Bitcoin can go down further in the short term is because of the mindset of many investors in the market.
We have so much hysteria happening in the market. People who want to manipulate it know very well how to make people panic. When people panic, they sell to cut losses, and these manipulators, these big whales, can buy those dips.
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