In the crypto industry, signs of an impending crisis seem to be becoming increasingly apparent, unsettling investors and encouraging them to sell digital assets, further driving their prices down. As noted by Bloomberg, Bitcoin has lost value for the ninth straight day, and over the past day its minimum price has touched $20,081.95. This is the largest cryptocurrency’s longest decline since 2014.
The cryptocurrency market started falling late last year due to US inflation and the US Federal Reserve’s response. Now the collapse of the market looks more like a panic. This has been particularly facilitated by the collapse of the Terra blockchain and the recent decision by crypto lender Celsius Network to suspend withdrawals of funds. According to analyst firm Glassnode, even long-term investors who have so far resisted the temptation to sell assets are faltering.
Mike McGlone, an analyst at Bloomberg Intelligence, is confident that Bitcoin can slow the decline around $20,000 – similarly he has priced $5,000 for 2018-2019. and about $300 in 2014-2015.
To date, the cryptocurrency market has declined significantly from the highs observed recently – last November when Bitcoin traded at a price above $65,000 and investors were not afraid of speculation. So far, the total cryptocurrency market cap has fallen to $925 billion from $3 trillion in November.
Major asset prices continue to fall, and if the biggest cryptocurrencies break the psychological barriers ($20,000 for Bitcoin and $1,000 for Ethereum), another decline could accelerate, analysts are sure.