Two-Day Sell off Wipes $130 Billion Away from the Cryptocurrency Market

January 21, 2021

The price of Bitcoin is hovering around $40,000 Canadian for the first time since January 11 after a two-day selloff saw a 10% drop in the price of the world’s most valuable cryptocurrency. The total market value of all cryptocurrencies has dropped nearly $130 million in just the last 48 hours. The market is responding not just to a huge bull run that might be causing investors to take profits, but also because U. S. Treasury Secretary Janet Yellen is in the media publicly voicing concerns about the supposedly growing illicit use of cryptocurrencies.

30% Corrections Are Nothing New for Bitcoin

Michael Shonnenshein is the CEO of Grayscale Investments, one of the largest institutional HODLers of cryptocurrency. He points out that 30% corrections and the price of Bitcoin are nothing new. He’s right. Between 2016 and 2017 at the height of the biggest Bitcoin boom the market had experienced until recently, there were no less than six different corrections of 30% or more on the way to higher highs for Bitcoin.

Ethereum is also down around 10% over the last 48 hours.

Where does Janet Yellen Fit into All of This?

Yellen is from the traditional financial world and she yields a lot of power. When she speaks, people listen. People are so ready to listen in fact that the crypto community has taken it upon itself to publicize what Yellen earns in speaking fees as she defends the traditional financial system.

It appears that much of her sentiment surrounding cryptocurrency has more to do with defending those who dish out her speaking fees, like Citibank for example. Vox Media is reporting that Yellen’s strong criticism of crypto stems from the fact she recently had to publicly reveal that she earned over $7 million in speaking fees over the last two years. That’s why crypto bulls are online trashing her opinions online

What should you do about it?

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Consider buying the dip folks.