“Why the crypto dip?” is probably among the most common questions asked by Twitter NFT collectors these days. Some say it’s related to the NASDAQ stock market, while others blame major institutions that started investing in the crypto space – NFTs included.
Either way, one thing is certain: cryptocurrencies went down by 0.91% on January 10, and that includes DeFi tokens too.
Why did the crypto dip happen?
Unfortunately, the crypto market stepped into 2022 on the wrong foot. This week, both Bitcoin and Ethereum (the two most successful cryptocurrencies right now) have decreased. Part of the reason is obviously China’s recent ban on crypto mining – but what if there’s something else going on?
For example, the popular NFT influencer Beanie blamed big institutions that took interest in the crypto sphere recently. According to his theory, these institutions still view crypto as a high-risk asset. As a result, they would be the first to “dump” the market just as quickly as they had entered it.
Are institutions ruining the crypto market?
In 2021, we’ve seen plenty of major brands and big names from all across the globe engage with crypto – especially when it comes to NFTs. From Nike and Samsung to giant investors such as Elon Musk, these trendsetters have already invested millions into the market.
Obviously, institutions can no longer ignore this extraordinary growth in any market. However, Twitter users such as @boredapewood believe that the NFT space is “pretty much decoupled from the broader market” and might not be affected by the potential upcoming changes.
Even so, it’s difficult to tell whether institutions are the reason behind the recent crypto dip. In this case, only time can tell.
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All investment/financial opinions expressed by NFTevening.com are not recommendations.
This article is educational material.
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