The evolution that the cryptocurrency market has experienced in recent months has been truly crazy. In October of last year its value reached such a huge peak that these assets surpassed the value of Apple in market capitalization, quite an achievement considering the particularities of cryptocurrencies and the fact that Apple is a valued giant, at that time , in more than 2.3 billion dollars.
The constant growth of cryptocurrencies and their position in the market during this last golden age always left us with the same question, when will the next puncture occur? We did not have to wait long to answer it, since last January Bitcoin sank to $35,000, that is, it lost almost half of its value compared to November 2021, and today it has bottomed out by falling to $35,000. $24,200.
This situation clashes head-on with the forecasts of those who said that 2022 was going to be the year of cryptocurrencies, and that Bitcoin was going to grow unstoppably until it reached $100,000. Personally, and taking into account the volatility and cyclical periods of cryptocurrencies, with falls and rises just as fast and marked in very short periods of time, I dare not say that we may not see a recovery soon, and maybe at Bitcoin eventually reaches $100,000, but I think the question is not whether it will, it’s how long will it keep.
The fact is that, with the last big drop that the cryptocurrency market has just suffered, its total value has dropped from a trillion dollars. This represents a setback to the values of January 2021, since at the time of writing this article we found a total value of 926,000 million dollars. For comparison purposes we only have to remember that in November 2021 this market recorded a peak of 2.9 trillion dollars.
Experts say rising inflation and current social realities, with the Ukraine war being one of the biggest flashpoints, have led investors to avoid risky investments, and this has ended up taking its toll on cryptocurrencies. Have cryptocurrencies bottomed out or will we still see more declines? I don’t have the answer to this question, but seeing that the last big drop occurred when we were with an apparent hint of recovery I think this is not the best time to invest in this sector.
