Bitcoin today is trading at USD 21, 974. It has fallen by 25 per cent in the past five days alone, to its lowest value in the last 18 months.
FREMONT, CA: The tale of the world's best-known cryptocurrency is fast-moving and its fanatics will soon tell the world that it has not comprehended it yet. The past 24 hours have been disastrous for the grande dame of cryptocurrency-even by Bitcoin standards.
What's Exactly Happened
Bitcoin today is trading at USD 21, 974. It has fallen by 25 per cent in the past five days alone, to its lowest value in the last 18 months. Specialists say this is due to the wider global climate. It's not just in the crypto arena conditions are not very favourable. Recession threatens inflation is skyrocketing, interest rates are increasing and living costs are getting more severe. Stock markets are swinging too, with the US S&P 500 now in a bear market. Consequently, even the prominent investors are less free with their banknotes. And many ordinary investors have less to invest. For many, an investment in an as volatile and unforeseen asset like cryptocurrency seems like a risk too great in these times. It's unregulated and unprotected by the financial powers, so if one is using their savings to invest in crypto and it loses value, or lose access to their crypto wallet, their money is all gone.
People are increasingly choosing to sell up. The more people sell, the less Bitcoin is worth because that's how its value is decided- its value is pegged to its desirability. Unlike other traditional assets, Bitcoin has no inherent value to underpin it.
Can the Situation Change?
To stabilise Bitcoin, people who still have Bitcoin would require to hold on to it and others would require to start purchasing it again. Crypto fanciers will tell that now is a great time to buy, because it's cheap.