What is causing the crypto market to plummet, and what should we anticipate next?

 What is causing the crypto market to plummet, and what should we anticipate next?

Following a 12.02% decline the previous day, the cryptocurrency's market capitalization now stands at $1.62 trillion as of Saturday, January 22. As a result, the cryptocurrency's market capitalization was reduced by $356 billion in one day, from $1.98 trillion to $1.62 trillion. This is the lowest level in 5 months.

It can be seen that Bitcoin experienced the highest volume during the correction. However, it can also be seen that the RSI is currently at its lowest and oversold point since the real crash in March 2020 on a daily basis and the previous low point was reached during the September 2019 and November 2018 moves.

Chief Cryptocurrency Trading Analyst Michael van de Poppe made the point with the global crypto market: “Total market cap is at the next level of support; While the daily RSI is at its lowest since March 2020. Stock market sentiment is also at its lowest since March 2020. That says it all.

Next week will be a crucial week to watch the reactions in the markets, whether it is just a natural correction or if it will go further in the markets in which it will accelerate, accordingly we also see Bitcoin hanging at the $35,000 support level which is critical to watch.

Saylor and Bockley remain bullish on Bitcoin. Meanwhile, this year's crypto market drop is being scrutinized by MicroStrategy Inc (NASDAQ: MSTR) CEO Michael Saylor, who believes there are a number of contributing reasons.

"I think there's a lot of momentum here. If you look at the whole crypto ecosystem, you have a bunch of regulatory uncertainty, especially regulatory uncertainty around .stablecoins and crypto tokens and s It's about titles or not. The CEO revealed in an interview with Bloomberg that it "creates a bit of anxiety."

For institutions, Bitcoin is now a "great entry point," says Saylor, especially since popular investors like Bill Miller have recently allocated a large percentage of their portfolios to the major cryptocurrency.

He said: “I feel like it's holding up at this level. It is an excellent entry point for institutional investors. They see it being embraced by people like Bill Miller, by very respectable investors. It was adopted by the organizers; It has been adopted by senators, members of Congress, public investors, and public companies. They see this as a good entry point.

Despite Bitcoin's declining value, Michael Saylor has no plans to sell his company's $5 billion worth of stock. Similarly, Salvadoran President Neb Bukele revealed that the country “bought 410 bitcoins for just $15 million.” The latest purchase is the cheapest transaction for El Salvador since the country recognized Bitcoin as legal tender.

Disclaimer: The opinions expressed by the author are for informational purposes only and do not constitute financial, investment, or other advice.

 What is causing the crypto market to plummet, and what should we anticipate next?