Investors in cryptocurrencies have had a difficult few months after Bitcoin dropped from its all-time high of 69k. As a matter of fact, many other cryptocurrencies have followed BTC’s price behavior.
As of this writing, the entire crypto market has lost more than $1 trillion in value. Many experts believe that this is not the end of the wave. Many people are scrambling to get a handle on what’s to come and whether we’ll plunge into another dreadful crypto winter.
Since bitcoin’s all-time high in November, the entire crypto market has lost around $1 trillion in value. Other digital currencies like ether and solana have fallen drastically alongside the number-one currency. Solana’s value has plummeted by 65 percent since its all-time high in November. On the other hand, Ethereum has fallen by more than half. During the so-called “crypto winter” of 2018, bitcoin suffered an 80% decline in price; might this be another case of current price action?
Former Facebook crypto chief David Marcus (now Meta) appears to feel that a crypto winter has already arrived. He remarked in a tweet earlier this week that the smartest entrepreneurs build the better firms during crypto winters. Now is the time to return the attention to solving genuine problems rather than simply pumping tokens.
Over the previous year—especially with all the buzz in this market. A lot of engineers seem to have been seduced by the easy returns. This is from speculating in NFTs (non-fungible tokens) and other digital assets, said Nadya Ivanova, chief operating officer at BNP Paribas. Ivanova said on CNBC’s “Squawk Box Europe” that a period of calm might be an opportunity to build the market’s foundations.
Many coins are suffering the same fate as significant equities, most notably the stock market. Also, many investors are afraid of strict federal laws. They also fear interest rate modifications that may hurt rather than help if you made a lot of money this previous year. According to some analysts, such steps by the US central bank in reaction to rising inflation could mean the end of ultra-cheap money and sky-high values, especially in fast growth industries like IT.
Luno vice president of business development and worldwide Vijay Ayyar believes the latest crypto fall is more of a “correction” than a long-term decline. In addition, he said that the critical level to keep an eye on for bitcoin in the future is $30,000. That would certainly suggest high chance of a bear market if it closes below that level in a week or more. The price of bitcoin would fall to less than $15,000 if it had fallen by 80% from its current peak. As far as Ayyar is concerned, such a situation is not plausible.