Over six trillion cryptocurrencies were lost in six months

More than $ 1 trillion worth of digital currency has been lost since November, with traders halving the value of bitcoin and other cryptocurrencies to avoid risky investments.

Wild swings are very common with crypto currencies, but even experienced investors were shaken.

Investors are seeing the volatility in the financial market as interest rates rise and inflation rises, and they are reacting by selling risky assets.

For crypto, it was a dynamic journey into the abyss.

Last year, cryptocurrencies were on fire and seemed to have gained more legitimacy after years of being used as a border, speculative product. Tesla Inc.

TSLA 5.71%

He said he bought Bitcoin $ 1.5 billion worth of inflation. Coinbase Global Inc.

Coin 16.02%

Listed the role of public sacrifice in the first major bitcoin.

In November, Bitcoin and Ethereum, the most popular cryptocurrencies, reached an all-time high. A.D. On November 9 at 5pm, the Bitcoin price was $ 67,802.30; ethereum was $ 4,800. They are now down 58% and 60%, respectively.

Sources: CoinDesk (bitcoin); Kraken (Ethereum, Dojcoin); CoinMarketCap (Shiba Inu)

Sources: CoinDesk (bitcoin); Kraken (Ethereum, Dojcoin); CoinMarketCap (Shiba Inu)

Sources: CoinDesk (bitcoin); Kraken (Ethereum, Dojcoin); CoinMarketCap (Shiba Inu)

Sources: CoinDesk (bitcoin); Kraken (Ethereum, Dojcoin); CoinMarketCap (Shiba Inu)

Sources: CoinDesk (bitcoin); Kraken (Ethereum, Dojcoin); CoinMarketCap (Shiba Inu)

Crypto currencies were falling even before last week, the victims of high inflation. Bitcoin and other digital currencies are said to be inflationary. But the wave effect played a different role. Rising inflation is pushing the Federal Reserve to raise interest rates, which investors believe will slow down economic growth. As a result, investors are dismantling risky assets, including securities.

Adding to the losses is the crypto business, which was initially dominated by private investors and now dominated by institutional investors as hedge funds. People looking for crypto diversification have been caught wrong.

At low prices, both private and institutional investors are struggling. When Coinbase reported its first quarter results late Tuesday, users said they were bleeding. At the end of trading Thursday, Coinbase’s stock was 82% lower than a year ago after its first trading day.

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Write Peter Santley at [email protected] and Corrie Driebusch at [email protected]

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