Cryptocurrency NewsBusiness

Bitcoin Drops

Bitcoin drops sharply as cryptos stutter into 2022

Bitcoin has had a horror start to the new year, falling in value four of the last five days.
It comes as the notoriously volatile cryptocurrency has fallen sharply from its record peak two months ago.
At the start of November, a single Bitcoin would set you back $91,000. Today, that Bitcoin is worth $58,000.

Other cryptos are also in steep decline, including Ethereum, Binance Coin and Cardano.
Since November, more than $1.5 trillion has been lost to falling cryptocurrency prices.
Bitcoin has crashed many times before, only to bounce back.
But this most recent decline is the first to take place after Bitcoin gained mainstream legitimacy as an investment option.
From September to December, the government of El Salvador made a series of multi-million dollar investments in Bitcoin.

Now the Central American nation’s treasury is more than $16 million poorer than it was a few months ago.
But bullish crypto fans believe a lot of investors are waiting for Bitcoin to stop falling before jumping on board.
“So. much. money. patiently waiting to BTFD (buy the f—ing dip) in bitcoin,” tweeted crypto billionaire Barry Silbert on Saturday.
Bitcoin was started as an alternative and unregulated currency, with the idea that it would be untethered to the global economy.
But in recent months the crypto’s value has been strongly connected to the amount of liquidity in the market.

With the US economy booming, the Federal Reserve is signalling it will be putting less cash into the market to bring inflation down.
And projected interest rate rises are likely to hurt Bitcoin’s price even more.
Infrastructure Capital Advisors CEO Jay Hatfield told Al Jazeera it is possible Bitcoin could be worth half what it is now by the end of 2022.
“Cryptocurrencies are likely to remain under pressure as the Fed reduces its liquidity injections,” he said.
But five days ago, Wall Street giant Goldman Sachs projected a single Bitcoin could be worth $180,000 in the next five years.

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