Since 2009 the growth of cryptocurrencies has not stopped. And these digital money bring with them countless advantages; they are decentralized, easy to use and international. However, one of its main features is volatility. One day they can be worth a lot of money and lower their price considerably after a few hours. This is the example of what happened a few weeks ago. What happened to the cryptomarket in january 2022? we give you some information about it.
The value of cryptocurrencies decreased in hours
One of the most relevant characteristics of cryptocurrencies is their volatility. These can be worth a lot of money and suddenly decrease their value in a matter of days or hours. There have been cases where people become millionaires due to sudden increases in the value of cryptocurrencies, while others have lost everything for the same reason. Therefore, something that should be taken into account is never invest everything you have in this class of digital assets.
Similarly, nowadays it is very common to see the appearance of so-called NFTs or Non-Fungible Tokens. These are tokens that represent unique properties, which are not interchangeable. Therefore, they have caused a stir in the world of art, video games and sports. It is advisable to take things easy, since there are thousands of tokens that are appearing. According to some experts, for future decades there will be only the best known currencies with high values. But what happened to these in January 2022?
The Crypto Crash of January 2022
The so-called Crypto Crash happened because in less than 24 hours the value of existing cryptocurrencies decreased considerably. Bitcoin, Ethereum, Solana, Cardano, Ripple and BNB were the digital currencies most affected by this crash, where it is estimated that nearly $190 billion dollars were removed from this market. Similarly, all tokens related to these cryptocurrencies were affected.
Investors of these cryptocurrencies have panicked, as the decline has been considerable. In less than a day Bitcoin lost 10% of its value and is estimated to cost about $38,000. The currency had not had this price since mid-2021, which represents a huge crash for the steady growth it had been having.
On the other hand, some have sought to buy the aforementioned currencies, since they consider it a golden opportunity. The other cryptocurrencies (Ethereum, Solana, BNB and Ripple) have had drops between 7 and 11%. The tokens related to all these cryptocurrencies have lost almost a trillion dollars due to the crypto crash of January 2022.
The “crypto black friday” for some people
In social networks have been seen some users that instead of taking the situation too seriously, they do it with humor. And others point out that it is a great opportunity to acquire cryptocurrencies and tokens, as if it were the popular “Black Friday”.
But why did these cryptocurrencies lower their value in this way? according to theories, the stock markets had a collapse that affected the rest of the economy. This is how it was seen that the Wall Street index fell the previous day by 1.30%, affecting the economy in general and cryptocurrencies as well. Similarly, the prohibitions of some countries and the measures being taken with the mining of digital currencies have also influenced their value.
In Russia, for example, drastic measures are being taken to ban mining at all costs. On the other hand, the US Federal Reserve has taken tough measures to combat inflation, which has led to different movements in technology investors. Recall that cryptocurrencies are often affected by various political and global scenarios, as well as natural disasters, for example.