Crypto has been touted as the next big thing, but there are a ton of reasons why it hasn’t taken off yet. Is what’s going on in crypto just an over-hyped bubble? Or will this market continue to grow and spread its magic beyond the digital realm?

The “crypto meltdown” is a term that has been used to describe the recent events in the cryptocurrency market. The sudden drop in value of cryptocurrencies such as Bitcoin and Ethereum, which have been gaining popularity over the past few years.

How More Than $1 Trillion of Crypto Vanished in Just Six Months

Traders’ flight from riskier assets has cut the price of bitcoin and other cryptocurrencies in half since November, wiping away more than $1 trillion in digital currency.

Even seasoned investors were left reeling as bitcoin plummeted 29 percent during a seven-day losing run that recently concluded as a stablecoin—a portion of the crypto world that boasted about its stability—unexpectedly imploded.

Investors are reacting to rising interest rates and rising inflation by dumping riskier assets as the financial markets reach a tipping point.

It’s been a tumultuous voyage into the depths of crypto.

After years of being seen as a fringe, speculative commodity, cryptocurrencies took off last year and looked to earn greater credibility. Tesla Inc. TSLA 5.71 percent said that it has purchased $1.5 billion in bitcoin, causing prices to rise. In the first significant bitcoin-focused public offering, Coinbase Global Inc. COIN 16.02 percent listed its shares.

Bitcoin and Ethereum, two of the most popular cryptocurrencies, hit all-time highs in November. At 5 p.m. on Nov. 9, bitcoin was valued $67,802.30, while ethereum was at $4,800. They are currently down 58% and 60%, respectively, from their previous highs.

How-More-Than-1-Trillion-of-Crypto-Vanished-in-Just

CoinDesk (bitcoin); Kraken (ethereum, dogecoin); CoinMarketCap (all cryptocurrencies) (Shiba Inu)

1652528529_565_How-More-Than-1-Trillion-of-Crypto-Vanished-in-Just

CoinDesk (bitcoin); Kraken (ethereum, dogecoin); CoinMarketCap (all cryptocurrencies) (Shiba Inu)

1652528529_737_How-More-Than-1-Trillion-of-Crypto-Vanished-in-Just

CoinDesk (bitcoin); Kraken (ethereum, dogecoin); CoinMarketCap (all cryptocurrencies) (Shiba Inu)

1652528530_103_How-More-Than-1-Trillion-of-Crypto-Vanished-in-Just

CoinDesk (bitcoin); Kraken (ethereum, dogecoin); CoinMarketCap (all cryptocurrencies) (Shiba Inu)

1652528530_124_How-More-Than-1-Trillion-of-Crypto-Vanished-in-Just

CoinDesk (bitcoin); Kraken (ethereum, dogecoin); CoinMarketCap (all cryptocurrencies) (Shiba Inu)


Subscribe to our newsletter

Markets

A pre-markets primer full of breaking news, trends, and ideas. There’s also real-time market data.


Even before this week, cryptocurrency prices were plummeting due to sky-high inflation. The use of Bitcoin and other digital currencies as inflation hedges has been discussed. However, the ripple effect has been different. The Federal Reserve is raising interest rates quicker due to rising inflation, which investors worry will hamper economic growth. As a consequence, riskier assets, such as cryptocurrency, are being sold by investors.

Crypto trading, which was formerly controlled by individual investors, is now dominated by institutional investors like as hedge funds, aggravating the losses. Those looking for crypto diversity have been taken off guard.

Individual and institutional investors have started bailing out as the price has dropped. Coinbase acknowledged that it is losing users when it released its first-quarter numbers late Tuesday. Coinbase’s shares had fallen 82 percent from its debut day of trade little over a year ago by the conclusion of trading on Thursday.

SHARING YOUR IDEAS

What are your predictions for the cryptocurrency markets? Participate in the discussion below.

Peter Santilli and Corrie Driebusch can be reached at [email protected] and [email protected], respectively.

Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

The “Thailand Pass and Go” is a story that has been circulating around the internet. It is about how more than $1 trillion of crypto vanished in just six months. Reference: thailand pass and go.

  • bangkok post
  • suracha chaimongkol
  • sadom kaew
  • bangkok latest news now
  • thailand travel test and go
You May Also Like

The Unlikely Rise And Fall Of A Former NBA Champion Gone Rogue: The Bison Dele Story

The story of Bison Dele, the former NBA champion stopped by an…

As Omicron Spreads, Governments Race to Ease Staff Shortages

The Omicron virus has been spreading around the world rapidly. With a…

What happens when best friends are traded for each other in the middle of the NBA season?

After a surprising trade, the two best friends find themselves stuck playing…

Chicago Bears brass leaning on patience, perspective to guide long

The Chicago Bears are in a position somewhat unfamiliar to most NFL…