It should be noted that, at the end of 2021, the capitalization of the more than 10 thousand existing cryptocurrencies had exceeded 3.2 billion dollars.
This Saturday, total value fell below $850 billion. Bitcoin fell below US$19,000, a loss of 9%, which it cut in the hours that followed. By mid-morning, the value of the most famous cryptocurrency was $19,380, according to coinmarketcap.
For its part, ethereum, the crypto created by the Russian-Canadian Vitalik Buterinwas trading at USD 1,006, about to fall for the first time in a long time below one thousand dollars.
The bear market that has happened in the crypto world in recent weeks and that led BTC to lose the floor of $20,000 and Ethereum to be one step away from $1,000 was called crypto winter. This bear market was triggered by several events, but mainly by the increase in international interest rates to combat inflation.
One of the most powerful actions for this phenomenon was the recent decision of the United States Federal Reserve to increase in a single session the reference interest rate by 75 basic points (0.75%), something that did not happen 28 years ago. To this was added the diffusion of the highest US inflation rate in the last 41 years and the possibility of a recession that, when added to the sharp economic slowdown in China, it would plunge the global economy into a more or less prolonged period of stagflation.
Another event that hit cryptocurrencies hard was what happened with Terra. Algorithmic stablecoin UST lost dollar parity and LUNA, its collateral, fell 100%. This generated a cascade of losses that reached up to US$300 billion.
In the case of the crypto market, the recent decision to Celsius Y Babel Financetwo crypto market lenders, to limit withdrawal of fundsand the negative of Three Arrowsto provide coverage for some cryptocurrency bets.
For 40 days the crypto universe has not stopped collapsing and since its peak in November 2021, bitcoin lost more than 70% of its value.
Source: Ambito
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