The last couple of weeks have been pretty rough on the Crypto markets, to say the least. Plenty of different reasons have been given but there is one underlying theme to them all. Uncertainty.
Markets hate uncertain futures and this has not been the case recently at all. While the markets had been able to shake off the unknown policy-wise it has not been able to shake off the other issues that have started to emerge. When the Omicron COVID variant hit the news it smacked markets like the idea of the economies opening up that had been banked on was thrown into disarray. This also forced people to look at other issues that had been of growing concern and that includes things like inflation numbers, government policies, and geopolitical issues.
Right now everyone has a billion questions and no answers. This is leading to people dumping their riskiest assets or assets they might have bought on the hype for assets that they know or are traditionally invested in during times of uncertainty. While stocks have been hit you will see that things like the DOW have not been hit as hard as others like the Nasdaq and S&P 500 as these are companies that are large players and better suited to ride out market issues.
Given all of these issues that the market and people are now having to face after it being glossed over for the last few months money moving into developing spaces like crypto and blockchain is in jeopardy. These issues are forcing people to be much more careful with their money especially when they do not understand the thing they are investing in. Without these inflows and support, crypto faces people pulling out in stages or waves. Those that do not understand the space but got in it for the hype would be the first to pull their money out. With them pulling out the market naturally begins to pull back thus leading to a fall in value.
Until there are more answers for COVID, the supply chain, Russia/Ukraine, inflation it is going to be choppy going for both traditional markets and crypto. Consumers in America are waking up to their money not going near as far as it did just a couple of months ago and even the Fed has said that inflation will not be transitory anymore. Until there are more answers to these issues more people getting involved with projects and more money going into the space is going to be just that much harder. Those of us who believe in crypto long-term will see this as a great buying opportunity but I expect the rest of the year to move sideways at best because of the external issues impacting the crypto market.
Please know I am not a financial advisor I am just someone who picked up on a trend and wanted to express it! Makes sure you always do your own research and never invest money you cannot afford to lose! If you enjoyed this article and would like to further support me below are a couple of referral links that if you used when signing up I would appreciate it!
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