The value of Bitcoin continues to free fall. The best known and supposedly most stable cryptocurrency in the market has dropped below $34,000 in valuewhich is about 32,000 euros.
The value of Bitcoin has plummeted by 50% in recent months, with its price now below $34,000
These numbers are very illustrative of the downward trend of the Bitcoin, which since the peak it experienced last November, spurred by the then imminent launch of the cryptocurrency’s ETF, has seen its value plummet by as much as 50%. This plunge in Bitcoin’s value coincides with a week of red numbers in stock markets around the world.
The bitcoin assets account for about one-third of the market of cryptocurrencies worldwide. The total value of this digital asset is estimated to exceed $636 billion. Ethereum, the second most powerful cryptocurrency in the world, has also seen its value decline. In the last week alone, its price has fallen by up to 10%.
The truth is that these first months of 2022 are being relatively quiet for the cryptoasset market. However, previous years were characterized by constant ups and downs in the value of assets. If in recent years the market has been dominated by individual investorsnow it is starting to become professionalized and filled with brokers, investment funds and financial institutions. This has caused the rhythms of the cryptoasset investment market to keep pace with the cycles of the traditional stock exchanges.
In addition, in the last year Bitcoin has become legal tender in two countries. The first government to take this measure was El Salvador in September 2021. It was a decision highly questioned by economists and other governments.
Even the International Monetary Fund warned that this decision could increase the risk of financial instability worldwide and favor the activity of criminal groups, which use these assets to launder their illicit proceeds. It was followed by the Central African Republic, which two weeks ago announced that Bitcoin would be its second official currency.