Is this the 'black swan' event that experts have predicted?

White swan, black swan. what does that mean?

A black swan event is any event - usually unexpected - that causes significant financial disruption in global economies.

And with the collapse of the price of Bitcoin, Ethereum and all digital currencies on January 20, 2022 - we may be at the beginning - seeing the first signs - of a major global black swan event.

We know that the cryptocurrency markets have gone through three sharp drops in the past two months. Or maybe the crypto markets have entered a long cold winter?

Bitcoin Fellow, Top Writer, Isaiah McCall He believes that a cryptocurrency black swan event is imminent. In fact, he authored an article about the crypto bubble bursting just 6 days before the cryptocurrency crash in January 2022.

But has the crypto bubble really broken?

Or was there an external event - other than a black swan type event - that led to a massive cryptocurrency sale?

Let's take a quick look at some of the reasons for the sudden drop in cryptocurrency prices.

The United States wants to create its own digital currency

The US federal government has begun discussion of issuing its own digital currency in a white paper published on Thursday, January 20.

On the same day, the cryptocurrency market crashed.

For obvious reasons, the US federal government-backed digital currency poses a risk to existing cryptocurrencies and can scare many investors into liquidating their assets.

If the US government launches its own cryptocurrency, backed by the Federal Reserve, it could easily ban Bitcoin and other crypto-assets, legally removing competition from the market.

Russia wants to ban Bitcoin mining

Not only is the Russian Central Bank working on a plan to ban bitcoin mining.

The Russian government wants to ban all cryptocurrency trading activities inside and outside its borders. Ban any citizen from buying, selling, possessing or creating cryptocurrencies.

Basically, Russia wants to follow China's lead.

And while Russia is not a huge crypto power, a country that bans crypto activity will affect the global crypto market.

last thoughts

Omicron, the COVID-19 variant, has certainly played its part in the recent crypto price performance.

As investors and traders are not sure about the future of the world.

However, the last cryptocurrency crash in January 2022 was most likely caused by a series of news media events.

Like the US Federal Reserve-backed digital currency white paper, Russia plans to ban cryptocurrency trading activity, other countries are still struggling over how to regulate cryptocurrency. No matter what, like Isaiah McCall

I think the cryptocurrency market will go up again as always.

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