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Consistently dropping cryptocurrencies’ prices need actual support that could relieve the investors, but seems like both are lacking at the moment.
It was several months ago when the top cryptocurrency Bitcoin (BTC) was at its highest top of more than $69,000. But since the cryptocurrency industry is stuck in a market crash, the meltdown in the market is going on rapidly. Massive decline in cryptocurrencies all over the market resulted in more than a two-third drop in global cryptocurrency market cap, which was around $3 trillion by November last year to about $900 billion to date.
Not just cryptocurrencies like bitcoin (BTC), Ethereum (ETH) and others are experiencing heavy losses but the major crypto firms like Crypto.com, Coinbase, BlockFi and many others are also facing the ill effects. These companies have also turned towards laying off many of their employees in order to cut down their costs, given the ongoing uncertainties and volatility in the market.
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Looking at the situation that cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH) are going through, experts believe that they are experiencing the same hit by which stocks and other assets are affected. These factors include the increasing consumer prices at a quite fast annual pace, which is the fastest in the past four decades. Additionally, actions of the Federal Reserves like hiking of interest rates to fulfill its ambition to reduce the inflation.
The price of bitcoin has seen a massive drop where its price fell down even below $20,000. Looking at the vulnerable position of bitcoin (BTC), critics started mocking the situation by saying that the top cryptocurrency is supposed to go down to $0 definitely. At the time writing, the trading price of bitcoin is around $20,198, which has seen a rise from its recent lowest value of about $18,000.
The massive drop in bitcoin price also affected other sectors that went under deep stress along with monetary tightening actions and rising inflation. It’s not bitcoin (BTC) alone who have seen massive fall, it took Ethereum (ETH) along with it. Top smart contract network’s native token was down and drooped till $900, that was ETH’s lowest since January last year, but later revived and currently trading at around $1,076.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
