The cryptocurrency market has completely lost more than a trillion dollars in value since Bitcoin’s all-time high.
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Are the glory days of “Bitcoin” gone or is it a horseshoe?
The beginning of a miserable year witnessed by the cryptocurrency sector, prompted investors in this field to hold their breath and wait cautiously, hoping that winter would not have come, while some warn that the worst is yet to come, especially in light of the sharp selling in the sector.
Despite looming high fears of potential catastrophic losses, one of the whales investing in Bitcoin continues to buy the Bitcoin MicroStrategy, ignoring the market stumble, as well as recent drops in the value of the cryptocurrency asset, and the call of securities regulators. US to review its disclosure in future filings.
The reason for the collapse
The value of Bitcoin, the world’s largest virtual currency, briefly fell below $33,000 on Monday, its lowest level since July. Since then, it has recovered once more, reaching more than $36,000, but it’s still down nearly 50% since a record high of $69,000 in November.
Meanwhile, the entire cryptocurrency market has lost more than $1 trillion in value since Bitcoin’s all-time high, as the value of “Ether” has more than halved since it peaked in November, while… “Solana” decreased more sharply, and decreased by 65%.
The decline of cryptocurrencies is due to a combination of factors, including the impact of increasing inflation and the global spread of the “Omicron” mutation in both crypto and the stock market, as US market analysts have warned that rising inflation might prompt the US Federal Open Market Committee to take faster action in the coming months to tighten US monetary policy, which sparked fears in the traditional currency and cryptocurrency markets, to take root in another massive selloff.
Also, the cryptocurrency market took a big hit with the decline in mining operations in Kazakhstan, as a result of political turmoil, as well as the proposal of the Russian Central Bank to impose a ban on cryptocurrency exchange and mining, while the United Kingdom stated that it would stress the of crypto assets.
Fate predictions
One of the motives for the rise of cryptocurrencies over the past two years was the excess of financial and monetary stimulus associated with the pandemic worldwide, but these motives – according to some analyzes – are regarding to end, in light of the uncertainty in the global market regarding the risks of cryptocurrencies, and the threats associated with their use in illegal activities.
Although the volatility of Bitcoin makes its exact price difficult to predict, some analysts believe it will reach a market cap of $8 trillion by 2030.
The deep division among analysts over which way the market is headed leaves the future of the cryptocurrency uncertain, but there are some predictions that point to a long-term rally, which is perhaps what MicroStrategy, a US business intelligence and software company known for its strong Bitcoin buildup, is expecting. (BTC), CFO Phong Le stated that the company will continue to invest in, and acquire, its excess cash flow, despite the current downside outlook for the entire cryptocurrency ecosystem.
The contradictory behavior of investors in the cryptocurrency market between the sharp selling and the continuation of some buying and betting on the recovery, is nothing but a big process led by the whales of the cryptocurrency market to liquidate the sector from intruders. Those savers who choose to invest in cryptocurrency under these circumstances are ready to lose their money for the time being, because they are sure to get it back exponentially.
The question that is being asked at the moment: will the cryptocurrency market recover? Make sure to do what is best for you and your individual circumstances, and do not link your fate to a tweet from your owner or other giants of money, because this game is big, and only those who have an abundant surplus of money, and those who have the ability to control international economic and political decisions, are able to do so. miracles.