For the past two months, the price of Bitcoin has been steadily falling. And of course, the poor health of the queen of cryptocurrencies carries over to other digital currencies. According to the company Bespoke Investment Group, these successive crashes caused the loss of 1000 billion dollars.
We have been talking about it in our columns for two months now. If you follow Bitcoin news, you are aware that the price of BTC has been falling steeply for several weeks. At the beginning of January 2022, the value of the queen of cryptocurrencies had reached $42,700, its lowest level since September 2021.
This downward trend was only confirmed in the following days. As of January 21, 2022, the price of BTC fell below $40,000 and stood at $38,242. The fault in particular of several anti-Bitcoin measures on the part of the Russian Central Bank, but also on the part of the American Federal Central Reserve, which confirmed the end of financial support measures to stimulate the economy in this pandemic period.
1 trillion dollars gone up in smoke because of Bitcoin
At the time of writing, the price of Bitcoin is stagnating around €30,000, after a dizzying drop recorded this weekend. Faced with this worrying situation, the investment company Bespoke Investment Group has just draw up an initial assessment of the damage caused by these repeated crashes.
According to her, more than $600 billion have already gone up in smoke because of the decline of Bitcoin. This sum rises to 1000 billion dollars if we add all the cryptocurrencies to it.. Thus, Bespoke Investment Group assures that “these numbers give an idea of the extent of value destruction that bearish percentages can sometimes mask. Cryptos are obviously sensitive to these kinds of sell-offs especially given their high historical volatility.”
The company continues: “When you realize the level that capitalizations have reached, you have to think of volatility in terms of both raw dollars and percentages”. Note, however, that this general collapse is not just about cryptocurrencies. All financial markets have been in fragile health since the beginning of 2022 and the Nasdaq like other technology stocks are also recording serious losses.
Source: Bloomberg
