The year 2022 has not started well for the vast majority of cryptocurrencies. Their holders have seen consistent dips throughout the first 11 days of the year, a continuation of the downturn the market took in December. The total market cap of cryptocurrency dipped below $2 trillion for the first time since September 2021.
As a whole, 2021 was a huge year for crypto, with most major coins seeing huge increases. Even Bitcoin (BTC), the market leader, increased over 100% throughout the year and reached a new all-time high. With new projects on the slate for 2022, including Seesaw Protocol (SSW), investors are looking at the reasons behind this latest dip and are attempting to analyse how long it will last.
Why Has the Crypto Market Dipped?
COVID-19: The new Omicron variant is the latest stage of the Coronavirus pandemic, and its high level of contagiousness has seen cases take a huge upward trend. This has, perhaps unsurprisingly, sparked many people to sell their assets and led to uncertainty amongst some major investors.
Mining Restrictions: Kazakhstan has a population of under 20 million people. Despite this, it accounts for 18% of Bitcoin's hash activity. Hash rate is the total amount of computer power, a significant amount of which comes from Kazakhstan. During a recent period of civil unrest, the internet was shut down nationwide. The drop-in hash rate caused a fall in the value of BTC. In Iran, there has been a crackdown on mining Bitcoin.
Regulation and Inflation: There has been a slew of talks about further cryptocurrency regulation, as well as historically high interest rates in the US and UK. News coming out of the Federal Reserve Board's meeting in December indicates that the US will begin to scale back on measures that have been propping up their recovering economy. Once again this has caused some panic and a large sell-off of Bitcoin Futures.
Seesaw Protocol (SSW)
Seesaw Protocol (SSW) is one of what will be many new crypto releases in 2022. However, SSW will attempt to stand apart from other tokens with its unique utility. Seesaw Protocol will provide its users with the ability to conduct cross-chain swaps to seek the quickest and most cost-efficient network. It will be multi-chain across Polygon, Ethereum, and the Binance Smart Chain. As DeFi projects grow and grow in prominence and efficacy, SSW definitely looks to be worth monitoring. Seesaw Protocol (SSW) launches its presale next week and could be a chance for investors to get into a promising project at the earliest opportunity.
There are multiple reasons for this dip, and similarly, there are a number of responses. Many experienced and bullish investors are taking this opportunity to buy the dip. Tech company Microstrategy purchased almost 2000 Bitcoins, worth an estimated $91 million. In the words of Darshan Bathija, CEO of cryptocurrency payments company Vauld, "there was a significant increase in the number of addresses holding between 1,000 and 10,000 BTC between December beginning and December end. What this means is that majority of the investors were putting a lot of faith in Bitcoin's ability to recover possibly in the first quarter of 2022."
Levels of growth seen in 2021 may not be attainable for some of the larger cryptocurrencies in 2022. Despite this, stability and steady growth could be the aim of the game for some of the major assets. When it comes to newer projects, including the very promising Seesaw Protocol, there could be much more room to grow as investors look for larger gains.
Enter Presale HERE: https://presale.seesawprotocol.io/register
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