when will it stop?
The descent into hell or the return to earth of cryptocurrencies unfortunately continues for many investors who continue to see the value of their portfolio melt.
Bitcoin, the most popular digital currency, is down almost 10% to $20,737.24 in the past 24 hours, according to data from CoinGecko.
The drop is almost 34% in the last 7 days. Prices are now at their lowest level since December 2020.
Given the general downward trend and the same volatility that characterizes the crypto industry, it is possible that prices will sink below the psychological threshold of $20,000 in the next few hours.
In eight months, the value of Bitcoin has fallen by approximately 70% compared to an all-time high of $69,044.77 reached on November 10. The only good news for the digital currency is that on its own it still accounts for 43,069% of the total crypto market. valuation.
The market valuation depends on the evolution of Bitcoin. It is therefore no surprise that the market, which weighed in at just over $3 trillion in early November, lost over $2 trillion in Bitcoin’s crash.
The crypto market was only worth $926 billion at the time of writing, according to CoinGecko.
Scroll to Continue
The reasons for the crash are the same: recession fears are pushing investors to liquidate risky assets. Cryptocurrencies and technology groups are considered as such. And while experts anticipate an aggressive rate hike by the Federal Reserve to combat inflation, investors are opting for caution as they wait to see how things play out.
In addition, two major scandals have chilled investors.
The first is the sudden collapse of sister tokens UST and Luna, despite their founders promising that their technology was sound and viable.
The second scandal is crypto lender Celsius Network’s decision to freeze withdrawals and other transactions from its platform.
“The current bear market is not entering a phase aligned with the deeper, darker phases of previous bears,” Glassnode strategists wrote in a note. “The market, on average, is barely above its cost base, and even long-term holders are now being squeezed out of the holder base.”
Ether, the native token of the Ethereum platform, fell more than 12.5% to $1,079.58. In the last 7 days, Ether, the second cryptocurrency by market value, has plummeted 40.6%.
The drop is equally strong for meme coins like Dogecoin and Shiba Inu. Dogecoin has lost 36.4% of its value in the last 7 days and Shiba Inu 28%.
It is also the token stampede of decentralized finance projects, or DeFi, which are supposed to replace traditional finance. Cardano, Solana, Polkadot, Avalanche coins are down between 23% and 40% in the last seven days.