Crypto traders have seen blood across the board this week with cryptocurrencies losing up to 50% of their value overnight.
This kind of volatility is nothing unusual, but things are a far cry from the all time highs experienced mere days ago.
January has historically been a rough time for crypto. A glance at the previous years mirrors the current situation seen by traders, as morale and overall sentiment falls to a startling low after months of up-swing.
What’s causing it?
Events in China and Korea have historically had a big impact on the state of the market.
Recent reports have suggested China is preparing to block internet users from accessing international bitcoin exchanges. This comes after the country banned Chinese exchanges and ICOs last year, also causing a crash at the time.
There’s also talks of the government driving out China’s bitcoin miners, which account for the majority of the international mining market.
There’s also been plenty of speculation around Korea’s plans to regulate and control crypto, although the government has since announced it doesn’t plan an all-out ban on bitcoin and crypto trading.
The Chinese New Year is also coming up on February 16. Just like Christmas in December, this also takes money out of the markets.
