The Magazine for Asian Investors
According to Glassnode, around 40% of investors holding Bitcoin have suffered losses. Bitcoin has now fallen nearly 55% from its peak of $69,000 in November 2021.
In April, about 15.5% of Bitcoin wallets suffered losses after Bitcoin crashed to $31,000 along with the NASDAQ and contrary to the belief that Bitcoin is a hedge against inflation.
Bitcoin fell below $30,000 this morning in Asia after the U.S. released unexpectedly high inflation figures. By 4:30am Bitcoin had fallen 6.23% to $28,170.41.
Experts say if Bitcoin falls below $30,000, it could test the $25,000 mark.
The global market capitalization for digital currencies has fallen by $800 billion in just one month amid fears of interest rate hikes and balance sheet contraction by the Federal Reserve (Quantitative Tightening: QT), which will strain liquidity in the market.
Coinmarketcap.com, which collects prices of more than 1,000 cryptocurrencies from global exchanges, noted that the total market capitalization of cryptocurrencies fell to $1.4 trillion yesterday from $2.2 trillion on April 2.
The market capitalization of cryptocurrencies reached $2.9 trillion in November 2021, the highest level in history.
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Thursday, May 12, 2022