The value of the cryptocurrency market fell below $1 trillion for the first time since January 2021 according to the data site CoinMarketCap, reaching as low as $926 billion.
The global value of the cryptocurrency market peaked at $2.9 trillion in November 2021 but it has faltered so far this year. It has lost a value of $1 trillion in the last 2 months alone. And now the investors are ditching riskier assets in the face of high inflation and also fearing that the interest rates will rise by the central banks and it would potentially hamper growth.
The largest cryptocurrency, Bitcoin was down by more than 10% on the day, falling to $23,750. It is down by around 50% so far this year. Ethereum [ETH] fell over 15% to $1,210.
Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown said,
“As inflation proves to be an even trickier opponent to beat than expected. Bitcoin and Ether are continuing to get a severe bruising in the ring.”
Anthony Scaramucci, the founder of Skybridge Capital, a 3.5 billion asset management firm has some advice for crypto investors on how to survive the bear market and a crypto bloodbath.
He said that investors should “Recognize that bear markets happen,” adding that “they probably happened one out of every five years if you look at it over the last 120 years.” He noted: “If you stay disciplined during those periods of time, you got yourself very wealthy, and I think that is the message for investors.”
If we look at this from another angle, though the value of the cryptocurrency is declining, there are still retailers who want to buy them at this stage according to a survey conducted by the Bank of America. So there is still a narrow hope that this bearish trend will end and the bullish notion will begin very soon.