Everything is Falling!

From the Start of 2022 till date(24th January) almost every major equity and cryptocurrency asset has seen a substantial hit.

The equity markets of the world most notably Nasdaq, Sensex, Russell 3000, NZX 50, and SNP 500 have all seen a downfall in value.

The following table depicts the name of the Index along with the percentage change(YTD)

Index	YTD %
Nasdaq	-13.04%
Sensex	-2.86%
Russell 3000	-9.00%
NZX 50	-7.29%

Moving to the Crypto market, that isn't looking good either. Even with the fact that this is a highly volatile market, multiple coins have fallen drastically leaving many in tears.

The following table depicts the name of the Coin along with the percentage change(YTD)

Coin	YTD %
Bitcoin(BTC)	-29.85%
Ethereum(ETH)	-40.78%
Litecoin(LTC)	-34.53%
XRP(XRP)	-32.19%

With all of these corrections taking place, the question arises as to why all this really is happening?

Kara Murphy, chief investment officer at Kestra Investment Management, said cryptocurrencies have a life of their own but that the recent slump is rational.

1)Russia-Ukraine:

If you don't already know, there currently is a high amount of tension between Russia and Ukraine. With there being a decent probability that the countries get into an all-out war, investors are worried that this tension might have quite an impact on the markets. 

2)COVID COVID COVID!

With the numerous amounts of Covid variants out there, the spread of this virus is unpredictable leading to workflow disruptions and shortage of supplies.

3)Russian Central Bank:

A highly plausible reason for the fall is the proposal by the Russian Central Bank to ban the use and mining of cryptocurrency. This prevented its financial institutions from carrying out any crypto operations. 

4)The Fed becomes a hawk:

The Federal Reserve is expected to strongly hike interest rates throughout the year to cater to the rising inflation in the country, leading to investors being prudent about their investments.

As for what's going to happen next, looking at the volatility in both equity and cryptocurrency, 

Only time will tell.

Until then, stay alert, don't make any rash decisions, and most preferably, prioritize long-term gains.