The ’Black Friday’ Cryptocurrency Crash That Resulted In A $136 Billion Loss Was Caused By

<p>With every major coin bearing the brunt of the crash, here are the likely causes and what to anticipate next.</p> <p>Although the market has not yet closed, it is reasonable to conclude that January 21 became the month's 'Black Friday.' With market losses totalling $137 billion in the last 24 hours, here are several plausible explanations.</p> <p>1. Market Liquidations Driven by Bitcoin</p> <p>Today's market saw one of the greatest single-day liquidations in history, with about $880 million worth of liquidations reported from the market's opening to the time of this report.</p> <p>Bitcoin was the most liquidated contract, with close to $175 million in liquidated contracts. This is one of the primary variables that contribute to a market crash. Previously, on every significant liquidation, Bitcoin formed a massive red candle, cascading its effect across the rest of the market.</p> <p>2. Russia's Cryptocurrency Prohibition</p> <p>Today, one of the world's largest economies proposed prohibiting the use and mining of cryptocurrencies on Russian soil. According to them, cryptocurrencies posed a threat to financial stability, and the prohibition was motivated by concerns for residents' welfare and the country's monetary policy autonomy.</p> <p>This was one of the most significant blows to the global cryptocurrency sector following China's ban, as Russia is the world's third largest Bitcoin miner, raising environmental concerns. The bank stated directly,</p> <p>"The optimal option is to prohibit cryptocurrency mining in Russia."</p> <p>3. Wall Street's Dive</p> <p>The stock market in the United States of America has historically had a substantial impact on the cryptocurrency market, and for the same reason, it would not be surprising if that continues to be the case today. The S&P 500 Index has dropped over 4% in the last 72 hours.</p> <p>Plus, with a correlation of 0.59 between Bitcoin and the SPX, the dips were destined to effect one another, which they most likely did.</p> <p>What About the High-Priced