The year 2022 began with poor results in the world of cryptocurrencies. One drop in prices follows another, and the recovery is not on the horizon now. It all started with a big “sale” in January, then a further decline was caused by the invasion of Ukraine, so the negative trend has continued to this day. This week, Bitcoin, as the most prominent representative of the cryptocurrency market, broke the infamous negative limit of 33,000 US dollars.
Read more: NFT market on the verge of collapse
Lost half its value in half a year
This means that the value of the world’s largest cryptocurrency today is about 50% lower than it was at its peak in November last year. Back then, recall, the price of bitcoin had reached a peak of just over $66,000.
This decline is attributed to the general geopolitical instabilities in the world, which have spilled over into the crypto world from financial markets. In the last week alone, bitcoin has lost over 13% of its value, and a similar decline can be “praised” by ether, while smaller altcoins have plunged deeper into negative territory.
The causes of the latest decline in world markets, including crypto, are related to last week’s decision of the Fed to raise interest rates by 0.5 percentage points, the largest in the past 20 years. This has worried investors, who believe that inflation and more expensive loans will significantly impact global economic growth.