Cryptocurrency bitcoin expert5/20/2023 Fewer investors were exposed to crypto’s steep drops during the last downturn, so more now stand to lose money this time around. Still, there are major concerns about digital currency. (UBER) have fallen over 50% year-to-date, Lyft Other tech stocks are down significantly right now, he said, not just cryptocurrency. If you don’t think crypto is real you probably think it’s overvalued.” But this drawdown isn’t nearly as bad as the last crypto bear market, he added. “I think people look at crypto and think it’s weird or that it’s not real. “I really disagree with the folks who say there’s no way to recover from something like this,” said Yanowitz. It closed Tuesday at $102.31, but before its 20-1 stock split went into effect June 6, it was trading well above $2,000 per share. (AMZN), whose stock price reached highs of $113 per share in the late 90s internet boom before crashing by 95% to $5.51. Given how new crypto is (it started in 2009), said Yanowitz, it’s naturally more volatile. REUTERS/Dado Ruvic/Illustration/File Photo Dado Ruvic/Reutersīitcoin plunges below $23,000 as the crypto meltdown continues But if you continued to hold, you’d be up nearly 60% right now - even after the crypto market’s most recent decline from all-time highs last November,” said Felix Honigwachs, CEO of Xchange Monster.įILE PHOTO: Representations of the Ripple, Bitcoin, Etherum and Litecoin virtual currencies are seen on a PC motherboard in this illustration picture, February 14, 2018. “If you bought at the peak of the 2017 bull run (around $20,000), you saw a decline of 80% over the following year. The bear market between 20 also saw bitcoin fall about 82%, from $1,127 to $200. In November of 2021 the coin was valued at $4,850. But by November of 2021, the coin was valued at $68,000.ĭuring the same period etherium fell from $1,448 to $85, a drop of about 95%. In the last decade, two prolonged crypto downturns saw bitcoin lose more than 80% of its value, but the coin bounced back - and then some.ĭuring the 2017 to 2018 crypto bear market, bitcoin plummeted 83%, from $19,423 to $3,217. “Crypto bear markets usually draw down between 85% and 90%,” said Jason Yanowitz, co-founder of Blockworks, a research platform for crypto investors, executives and builders. They say that this is par for the course and that a bear market in crypto isn’t the same as a bear market for stocks: the lows are more extreme, but then so are the highs. So far, at least, leaders in the cryptosphere aren’t too worried. Binance, the world’s biggest cryptocurrency exchange, paused withdrawals for a few hours Monday, saying some transactions had gotten “stuck.” The Celsius Network, which has 1.7 million users, temporarily halted withdrawals due to “extreme market conditions.” They did not say when they would reopen the exchanges, indicating only that it would “take time.”Ĭoinbase, the largest cryptocurrency exchange in the United States by trading volume, announced Tuesday that it would lay off about 18% of its workforce, citing a recession that “could lead to another crypto winter, and could last for an extended period.”Ĭoinbase lays off 18% of its workforce and warns of 'crypto winter' More concerning are the structural problems rendering it impossible for investors to withdraw their money from crypto exchanges. Ether, the second most valuable digital currency, has lost about a third of its value since Friday and has dropped 75% below its highs. It’s lost a quarter of its value since Friday and is sitting nearly 70% below its high of $68,000 per coin in November. Still, long-term investors are shrugging off the extreme drops in the a value of digital coins and the breakdown of the exchanges that make them available to investors.īitcoin, the world’s most valuable cryptocurrency, dropped to near $21,000 Wednesday. Cryptocurrency is having a terrible week.
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