The global cryptocurrency market has dropped by more than $1 MILLION since November due to a series of horrific crashes in recent weeks.
Based on Bloomberg, Bitcoin alone lost more than 12% of its value on Friday and dropped to a six-month low.
It is currently at around $34,000, down 45% from its November peak. Other currencies have similarly depreciated if not more valuable during that time period.
Experts suggest that the shocking crash was the result of a crypto crackdown by the Chinese and Russian governments and that the US Federal Reserve wants to raise interest rates.
Cryptocurrency expert Edul Patel claims the current bottoming is also related to a lack of demand amid soaring inflation in the West, sending ordinary investors into a state of panic.
Bloomberg reports that the drop in Bitcoin over the past two months has wiped out more than $600 billion in market value.
The aggregated crypto markets fell by $1 million. According to Bespoke Investment Group, it marked the second largest loss in dollar terms for both.
“It gives an idea of the scale of value destruction that percentage reductions can mask,” Bespoke analysts wrote in a note.
“Of course, cryptocurrencies are vulnerable to these kinds of sell-offs due to their historically higher natural volatility.
“Given how large the market cap has grown, volatility is worth thinking about both in terms of raw dollars as well as as a percentage.”
Bitcoin and Ethereum plummeted $200 billion last week after Russia promised to crack down on lucrative cryptocurrencies.
The two most trusted cryptocurrencies entered a significant free fall on Wednesday with other smaller coins following suit.
Bitcoin has not previously sunk below $40,000 since early August 2021, during a long and painful summer of decline.
But within minutes, it was back at $41,000 as investors seemed to regroup after the coin.
Bitcoin’s market cap briefly hit a low of $750 billion at 2:40 p.m. Greenwhich Mean Time (9:40 a.m. ET), its lowest valuation in months.
However, at 2.54 p.m. GMT (9:44 p.m. ET), it recovered to $775 billion, well above its pre-crash market cap.
After 3 p.m. GMT (10 a.m. ET), Bitcoin started to fall again, with investors concerned about a double crash.
Risks of buying with cryptocurrencies
Investing and buying with cryptocurrencies like Bitcoin is very risky.
Their value is volatile and the City’s watchdog, the Financial Conduct Authority, has warned investors to be prepared to lose all of their money.
Investing in cryptocurrencies is not a guaranteed way to make money.
You should also think carefully about making purchases with cryptocurrency.
For example, Bitcoin has experienced dramatic price swings in recent months, and prices can change almost hourly.
Bitcoin price was at $40,258 on January 9, according to Coindesk, but fell to $34,214 just three days later.
That’s a 15% discount.
These price movements are risky for a business because you can sell an item with Bitcoin at one price and the value can drop shortly after, leaving you with less money from a purchase or sale.
Similarly, the price of Bitcoin has increased by more than 21% since the beginning of this week, so it can be difficult for buyers to get an accurate idea of the price of an item if its value changes on a daily basis.
It is currently hovering around the $41,000 mark – but there is no indication where it will head next.
The recovery is just the latest sign of the crypto market’s incredible volatility.
Bitcoin also fell last night after The Kazakh government turned off the power and the miners clashed.
Its value is currently hovering around $40,000, down from $69,000 at the beginning of November last year.
By far the biggest cryptocurrency, the Bitcoin trend could create ripple effects across the crypto world.
The currency has struggled amid uncertainty in the US economy, with the Federal Reserve discussing a rate hike in March – earlier than expected.
The latest plunge follows a crypto crash in early December, shortly after Bitcoin hit a record $69,000 in November.
Bitcoin has now lost a third of that value.
Bitcoin is a virtual currency created in 2009 by an unknown computer using an alias Satoshi Nakamoto.
Unlike physical currencies such as pounds, dollars or euros, which take the form of banknotes and coins, Bitcoin is not printed or minted.
Instead, the Bitcoin token is a digital-only form of payment and is “mined” using high-powered computers.
Its value has fluctuated wildly since its launch.
In other news, personalized smart gun, which can only be activated by verified users, may eventually be made available to US consumers this year.
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The police caught an Italian mafia henchman who was on the run for 20 years after discovering the fugitive on Google Maps.
And, one of the The best preserved fossils was found that confirmed that juvenile dinosaurs popped out of their shells like baby birds.
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https://www.thesun.ie/tech/8254832/cryptocurrency-crash-wiped-out-trillion-dollars-wealth/ Experts Say Crypto Crash ‘Wiped Millions of Dollars in Assets’