Dominance Debrief: 01/12 – 01/18

Far from the expected “January effect”, it has been an ugly start to 2022 for the crypto markets. Since hitting an all-time high in November 2021, the total cryptocurrency market capitalization has since decreased by $1 trillion. Much of this reduction has been attributed to the Federal Reserve indicating that interest rates will rise, and a tightening of monetary policy. 

This drop has signaled a possible maturing of the crypto market, as BTC and ETH are becoming increasingly intertwined with the wider market forces. Whether this trend will continue will likely be one of the top stories for crypto in 2022. 

“We are seeing an increased coupling between the top crypto assets and the broader tradfi market,” says Adrian Kolody, co-founder of Domination Finance. “For crypto investors to better realize the factors affecting crypto price action, they must now go beyond their traditional information sources and understand what is happening in broader global markets.”