#CryptoMarketDip

The causes of the crypto market crash

The primary cause of this crash is certainly the possible burst of a mini-bubble.

However, it must be said that not many analysts claim that November and December were a true mini-bubble.

It is necessary to specify that mini-bubbles are not true speculative bubbles, both because they last very little and because they have no significant impact on the medium to long-term trend.

But there’s more.

One of the key factors that characterized the trend of the markets yesterday, also highlighted by the poor performance of the USA stock exchanges, is the drainage of capital by the USA bonds. In other words, there was a flight of capital from risk-on assets to government bonds.

The thing had been somehow announced the day before by an increase in the MOVE index (U.S. Bond Market Option Volatility Estimate).

The other factor that has negatively impacted the crypto market, currently dominated by Bitcoin, is the Dollar Index, still decidedly very high, and even on the rise