In the latest blow to the cryptocurrency sector, Core Scientific, one of the largest publicly traded cryptocurrency miners in the US, which primarily mined bitcoin, filed for bankruptcy on December 21, citing falling cryptocurrency prices and rising energy costs.
The implosion of the now bankrupt cryptocurrency exchange FTX, once valued at $32 billion, has shattered investor confidence as the effects of the company’s collapse continue to haunt the cryptocurrency sector.
James Royal, Bankrate’s chief correspondent, tells CNBC Make It that many Americans are beginning to realize that cryptocurrency is nothing more than a speculative mania, and that the sector is riddled with scammers.
Another survey by CNBC Make It Your Money Survey in partnership with Momentive indicates that, to this point, 60% of Americans believe investing in digital currency is high risk, up from 45% in 2021, and 26%. Others believe that investing in digital currency carries a medium risk.
CNBC’s All-America Economic Survey indicates that as of November 2022, only 8% of Americans have a positive view of cryptocurrency.
All in all, the cryptocurrency market lost more than $2 trillion in 2022, and the performance of popular cryptocurrencies such as Bitcoin has fallen below its highest levels in 2021.
Here is how much the value of 7 popular cryptocurrencies has changed in 2022 as of December 22, according to CNBC’s calculations.
1. Terra: 100-%
2. Solana: -93%
3. AMP: 93-%
4. Cardano: 80-%
5. Ether: -67%
6. Bitcoin: -63%
7. Dogecoin: 55-%
Prices are likely to drop further when “traders and cryptocurrency companies start to see that they don’t have an endless stream of signs wanting to support cryptocurrency prices,” says James Royal.
In fact, Royal warns once morest investing in cryptocurrencies at all.
Cryptocurrencies are highly volatile assets that are subject to unpredictable price swings and falls. For this reason, financial experts usually advise once morest investing more in cryptocurrencies than you are willing to lose.
