The World of crypto is highly volatile and a lot of things can influence it over the course of a few hours. Since 2021, Bitcoin was stated to go over the $100k mark, but the rug pull by the Chinese government has set it back considerably.
As a result, the whole model turned upside down and at $40.7k, Bitcoin prices have come a full circle. BTC reached an all-time high at $69k in October but Russia and China’s crackdown on crypto enthusiasts in their country have severely affected the market.
China outlawed all crypto activities in June of 2021 and gave people time to sell off their digital assets. During this time, a lot of Chinese crypto holders and miners sold off their assets and the same was seen during November and December. The huge sell-offs have negatively affected the Crypto market and also dropped the price of the coin.
Not only that, it also made some people lose trust in the new DeFi technology and how it is being regulated by countries. Regulations on cryptocurrencies are still in the gray as some countries have embraced them while some have outright banned them.
With prices coming to $40k right where it started last year, it would be interesting to see where the market goes now. If you have been planning to add some crypto to your portfolio right now is the best time to do so. With BTC right where it was in Jan 2021, 2022 can be a new start.