It reached a peak of about $70,000 in November 2021 but has since plummeted by about 25%, reaching its lowest value in 18 months.
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Bitcoin is in trade around about $20,000.
According to experts, this is due to the general global climate. Not just in the cryptocurrency sector do things appear bad.
Living expenses are growing, interest rates are rising, a recession is approaching, and inflation is skyrocketing. Additionally, stock markets are shaky, with the US S&P 500 now in a bear market (down 20 per cent from its recent high).
Because of this, even large investors have less discretion over their funds. Many regular investors also have less money to invest in anything, unlike wealthy hedge fund managers or large organisations.
These days, many people feel that the risk of investing in something as erratic and unpredictable as cryptocurrencies is just too large.
As a result, if savings are being invested in it and it loses value or the crypto wallet can no longer can be accessed all the money is gone as it is unregulated and unprotected by the financial authorities.
People, due to the market crash are therefore making the decision to sell up more frequently. Because Bitcoin’s value is linked to its appeal, the more people sell it, the less it is worth. Because they can see the value declining, more people decide to sell as a result, and the cycle continues.
People who still own Bitcoin would need to cling to it, and new buyers would need to start purchasing it again, in order to regulate it. This has been previously witnessed and it is the only way to turn things around
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