Bitcoin has continued its drop into Monday after experiencing a rough weekend. It now stands at $32,940 compared to its all-time high of $69,000 in November. It has dropped a 50% in five consecutive days of a downtrend. Not only has bitcoin been down 50%, but Ethereum, the second-largest crypto in market cap, has also fallen. Ethereum now stands at $2,440.
Bitcoin has fallen out of the $35,000 to $46,000 zone it has fluctuated between in the first few months of 2022. Some experts have claimed that this could be a new market trend. The chief executive officer at Mudrex, Edul Patel, told Blomberg “The downward trend is likely to continue for the next few days.” Patel believes that bitcoin is testing the $30,000 level.
The total market cap of crypto assets has also gone down by 50%. From the $3.15 trillion in November to $1.52 trillion.
Bitcoins price that is currently down 50% is the reverse situation of the November uptrend. The bull run of November gave bitcoin a price reach of $69,000. The head of research at IntoTheBlock, Lucas Outumuro, told Fortune that “until the market starts looking past the impact that [quantitative tightening] and raising rates will have, I find it difficult for Bitcoin to establish a broader uptrend.”
There are many traders and investors concerned about rising inflation. Darshan Bathika is the chief executive of a crypto exchange based in Singapore. Darshan believes, “In light of fears of rising inflation, most investors have taken a risk-off approach – selling stocks and cryptos alike in order to cut down risk.”