Cryptocurrencies’ values have been diving due to the current bloodbath in the crypto market. Bitcoin, which is the most well-known cryptocurrency, continues to decline in value. Since the year 2022, Bitcoin has been dropping steadily.
Tradingview.com’s statistics show that the Bitcoin giant was valued at $883.89 trillion on January 1, according to their data. However, it has been experiencing a steady decline in its value and now stands at $568.55 Billion as of May 10, 2018.
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This means the Bitcoin market cap lost over 35% due to outflows of $315 billion in Bitcoin since the start of this year.
The DeFi asset’s drop in price has similarly declined the DeFi market cap. Bitcoin saw a steady decline in its price, falling to $46,726 as of January 1st, and now trading at $29,000.865 as per May 11.
The BTC price had dropped 35% at the time this article was written. The price of Bitcoin has fallen $17,861 since the beginning of the year.
Crypto Bloodbath Occurs Amidst Bitcoin’s Growing Adoption
Bitcoin’s inability to capitalize on the crypto adoption of 2022 across the global industries, became the reason for these year-to-date (YTD) losses. This also includes the Central African Republic’s recent adoption of Bitcoin (CAR), which is the second country to legalize Bitcoin after El Salvador.
The Bitcoin network is said to have installed 3,038 ATMs where Bitcoin users could buy and sell Bitcoins. As of May 11, there were 37,338 such ATMs.
In order to promote Bitcoin’s growth in 2021, the players in this industry installed over 10,000 ATM machines around the world.
Not only Bitcoin is seeing increased adoption, but nearly 700 new crypto currencies and 30 cryptocurrency exchanges were launched in March alone. As of this writing, 19384 cryptocurrency are currently circulating on 525 crypto exchanges.
Cryptocurrency Now Connected to Stocks
Cryptocurrencies’ relationship with stocks has grown up since many financial institutions have adopted blockchain technology over the past year.
Due to fear-mongering by the Federal Reserve, traditional financial markets have seen a large selloff. Wall Street has been experiencing difficulties and the index of Wall Street has fallen by 3.75%.
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Bitcoin’s price lastly went below $30,000 in July 2021 when its value reached the $29,301 mark before rebounding.
“Bitcoin could perhaps receive a mini-bounce near $35,000, but unless we break the trend line at around $37,000, I’m predicting for $29,000 in the coming weeks or week,” said Wendy O, a crypto analyst, in a new social media video.
BTC was regarded by many investors as the “gold” of the digital age and an investment that could provide inflation protection. But, seeing the volatile price actions of cryptocurrencies, the market doesn’t consider virtual assets as a reliable value repository.
Featured image taken from Pixabay. Chart from TradingView.com
