Cryptocurrency Lost more than $1 Trillion Market Value after Crashing!- Forexprop

What’s the hot news for Bitcoin these days? We all know that the price of bitcoin falling drastically. And, this has been the only constant recently.



With the Federal Reserve intending to withdraw stimulus from the market, riskier assets the world over have suffered. 

Bitcoin, the largest digital asset, lost more than 12% Friday and dropped below $36,000 to its lowest level since July. 

Since its peak in November, it has lost over 45% of its value. Other digital currencies have suffered just as much, if not more, with Ether and meme coins mired in similar drawdowns. 

Bitcoin’s decline since that November high has wiped out more than $600 billion in market value, and over $1 trillion has been lost from the aggregate crypto market.

While there have been much larger percentage drawdowns for both Bitcoin and the aggregate market, this marks the second-largest ever decline in dollar terms for both, according to Bespoke Investment Group.

 

Trendy News: Bitcoin & Ether Price Seems To Hit The Dirt: Falling By 7% And 8% Overnight!



“It gives an idea of the scale of value destruction that percentage declines can mask,” wrote Bespoke analysts in a note.

Bespoke analysts also added, “Crypto is, of course, vulnerable to these sorts of selloffs given its naturally higher volatility historically, but given how large market caps have gotten, the volatility is worth thinking about both in raw dollar terms as well as in percentage terms.”

With the Fed’s intentions rocking both cryptocurrencies and stocks, a dominant theme has emerged in the digital-asset space: cryptos have twisted and turned in nearly exactly the same way as equities have.

“Crypto is reacting to the same kind of dynamics that are weighing on risk assets globally,” said Stephane Ouellette, chief executive, and co-founder of institutional crypto-platform FRNT Financial. 

Stephane Ouellette again said, “Unfortunately for some of the mature projects like BTC, there is so much cross-correlation within the crypto asset class it’s almost a certainty that it falls, at least temporarily in a broader alt-coin valuation contraction.”

Crypto-centric stocks also dropped on Friday, with Coinbase Global Inc. at one point losing nearly 16% and falling to its lowest level since its public debut in the spring of 2021, Bloomberg data show.

MicroStrategy Inc. tumbled 18% while the Securities and Exchange Commission said the company can’t strip out Bitcoin’s wild swings from the unofficial accounting measures it touts to investors.

The enterprise software company’s pile of Bitcoin has effectively made its shares a proxy for the digital asset.   

Meanwhile, the Biden administration is preparing to release an initial government-wide strategy for digital assets as soon as next month and task federal agencies with assessing the risks and opportunities that they pose, according to people familiar with the matter.

Antoni Trenchev, Nexo co-founder and managing partner, cites Bitcoin’s correlation to the tech-heavy Nasdaq 100, which right now is near the highest in a decade. 

“Bitcoin is being battered by a wave of risk-off sentiment. For further cues, keep an eye on traditional markets,” he said. “Fear and unease among investors are palpable.”

 


 

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