Meanwhile, the cryptocurrency market is trading mostly up: Solana rises almost 8%; Terra, 5.5%; Cardano, 4.1%; Binance Coin, 3.7%; and Ether 3.6%.
BTC price sank to its lowest level in 7 months, racking up a 50% drop from its last November record this weekend, and most analysts are not optimistic about an immediate turnaround beyond this rebound.
At this weekend’s low, bitcoins have been sold for less than $34,000 on the main platforms where the cryptocurrency marks a price. This represents a decrease of 21% in the last week alone. A percentage that reaches 33% if prices from just a month ago are taken as a reference, when its value remained comfortably above US$50,000.
If the reference is taken in the prices with which the queen cryptocurrency began the year, the decline reaches 26%. In other words, in these 23 days of 2022, bitcoin has lost a quarter of its value. A fraction that doubles if the more than US$67,500 that were listed in mid-November are considered.
Although the defenders of bitcoin point to this sharp decline as an opportunity to take or strengthen positions in the “discounted” digital currency, the truth is that these falls once again account for the strong volatility that characterizes its evolution and that has been spurred on as its popularity has increased.
The lows reached this weekend are still 13% above the $29,800 that bitcoin hit at its lows last year, back in July. However, the instability introduced into the markets by the possibility of central banks accelerating their withdrawal of stimulus means that the collapse towards these values is not such a remote possibility.
When other assets fall sharply, especially stock markets, the withdrawal of positions extends to the crypto universe as well. Within this speech, International Monetary Fund (IMF) urged the administrations to change the focus of the regulation of this market from the prohibition to the establishment of firewalls with traditional finance. And all after having verified in a study the growing “correlation with the stock market”. A circumstance that has put the institution on guard against the “increased risk of contagion” that this entails.
As if that were not enough, precisely in recent days Russia slipped the possibility of restricting or vetoing the use of cryptocurrencies as payment currency, as well as prohibiting the mining of these digital currencies in its territory. A movement that has added speed to recent price declines, given that the initiative would mean the withdrawal of about 1.8% of the world’s population from this ecosystem.
With these ingredients, the collapse extends to the entire market. In the last month alone, Ethereum, which is the second most popular cryptocurrency, has lost 40% of its value. Cardano, to cite another example, yields 24% in this period. A) Yes, The joint capitalization of this economy has dropped from 3 trillion two months ago to 1.6 trillion currently indicated by the specialized portal CoinMarketCap.
Source From: Ambito
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