The january effect in crypto

Definitely January isn’t the best month for the market looking back in back in history to the last few years, however it would also be a lie to tell you that this hasn’t been a particularly rough month and that this is just a small correction.
I know a lot of you miss the days where everything was green and waking up to a red market can be very stressful, especially if you are just getting started in this space and don’t really get why this is happening, so let me feel you in in some of the news that have hit the market this month.

South Korea announcing that they will be taxing cryptocurrency exchanges

This is personally what I consider not only the biggest cause but also one of the best examples of FUD, most people panic sold as they thought South Korea was going to ban cryptocurrency exchanges. But at the end its only doing what is expected to happen with all other countries at some point in the future which is to impose some form of regulation in some economic activity, because any company that is earning money has to pay taxes and be regulated as a way to try to prevent scams.
https://www.investors.com/news/bitcoin-renews-sell-off-as-south-korea-clamps-down/

The seasonality in crypto

This is not exact science, but if the past is any indicator of future performance then we can expect the drop in the middle of January to be a normal thing just like the January effect in the stock market.
https://www.investopedia.com/terms/j/januaryeffect.asp

And finally, another Wall Street investor calls for the price of bitcoin to fall

I personally don’t think this matters as much as it did back in the day (or a few months back really) when cryptocurrencies were just starting to get some recognition by mainstream media and a big name like Warren Buffet or Jamie Dimon called Bitcoin a fraud/scam/bubble.
But none the less I can assure you a few people got scared with this news:
https://www.cnbc.com/2018/01/19/bitcoin-could-lose-90-percent-of-its-value-wall-st-veteran-boockvar-warns.html

My thoughts

Just like I tell the people who ask me in person, no I’m not worried, I don’t like watching my portfolio drop obviously, but I believe in the future of cryptocurrencies and the projects I have invested in, so I know that once the optimism and good news returns we will see the green days again, I know you sometimes can get trapped in the short term, but looking back at how much we have grown since last year I have no doubt that the future ahead of us is bright so relax and keep hodling.