The global crypto market capital has shed another $7 billion today, as Bitcoin and the wider altcoin market continue to struggle to find support. We’re here to explain why this is happening right now.
Bitcoin is the main trading pair with every other cryptocurrency or token on most major exchanges. If Bitcoin’s price rises, most other coins and tokens also rise, sometimes even outperforming Bitcoin itself in price action. The same is also true if Bitcoin’s price declines. Traders love this volatility, but smaller investors trying to time the market often get wiped out.
Here are 3 major reasons for why the crypto market has been in it’s recent slump, despite the hype surrounding Bitcoin’s upcoming halving. Let’s take a look.
1. Chinese New Year is right around the corner
In two days, Chinese New year kicks off, and all of China celebrates in a big way. This year will be the year of the rat. China is one of the largest crypto markets on the planet despite crypto trading being banned within China. Many Chinese traders have managed…