The cryptocurrency market is notoriously bad – and yesterday’s drop in bitcoin to its lowest value since December 2020 naturally affected other cryptocurrencies and the industry as a whole. For example, the global cryptocurrency market capitalisation has fallen below $1 trillion (to $926bn), according to CoinDesk and CoinMarketCap, websites that track the value of cryptocurrencies on various exchanges.
In the last two months alone, the cryptocurrency market has lost $1 trillion in capitalization – due to inflation in the US, the collapse of TerraUSD and the fall of other stabloids, which turned out to be not so “stabile” as well as other unfavorable conditions and risks associated with the approaching global recession and food crisis. Incidentally, the US stock market is also going through a downturn right now and is moving in the same direction in unison with the cryptocurrency market, and there the losses are much more severe, as the market itself is much larger. Recall that at its peak in late 2021, the cryptocurrency market capitalisation exceeded $3 trillion for the first time.
Over the past 24 hours, Bitcoin has been falling to $20,834.50 per coin, the cheapest the cryptocurrency has been since December 2020. Bitcoin has now recovered some of its losses and at the time of writing is trading in the $21,000-$22,000 range.
As of today, bitcoin has already lost almost 70% of its value from the high of $69,000 – the amount the cryptocurrency was worth by the end of 2021. By the way, at that time bitcoin’s capitalization was about $1.3 trillion, and now the figure is $417.74 billion.
As usual, different analysts make completely different predictions about the future of the cryptocurrency market. Some expect further declines amid an approaching global recession due to the war in Ukraine, while others believe that Bitcoin will be $100K per coin very soon. How exactly the situation will unfold is, as always, impossible to predict accurately (unless you are Marty McFly and have your own time machine) – one can only think.