If you’re a crypto and especially a Bitcoin investor, you’ve surely heard or seen the news. The crypto industry is in a serious crash right now, with Bitcoin slipping well below $20,000 for the first time in over 6 months. It’s not just a gimmick – the key cryptocurrency on the market is having trouble staying afloat, failing to reach key levels and keep over $20K. For the year, it has lost over 60% of its value, and is far away from the $69,000 maximum it reached in November 2021.
To make things even worse, further price declines won’t be a surprise. Along with Bitcoin, Ethereum and many altcoins are taking the fall. Not a single cryptocurrency is in the green, putting the market in Extreme Fear category on the Fear & Greed index.
What Happens Next?
It’s hard to predict what happens next. Some analysts are optimistic that Bitcoin will bounce back in a big way once the bear market is done. Others believe that this is the beginning of the end. Many investors have pulled their assets back, scared to lose even more money down the line. The truth is that no one’s sure what happens now. Just like always, the price of crypto is anyone’s guess.
Many crypto exchanges and lenders have already suspended withdrawals. Asian company Babel Finance was among those, while others are exploring options that include bailouts by other firms and the sale of assets. Celsius Network was among the first lenders to suspend withdrawals. This decision was met with ire by its customers, but according to the owners, it was a necessary one. Celsius said it would work with regulators and officials, but also admitted that steadying the ship will take some time.
For many experts, the latest crypto price drops are 2008 all over again. Further declines will trigger a domino effect that will result in many bankruptcies and liquidations.
Not Just Bitcoin
The market always moves in rhythm with Bitcoin. It moves the needle one way or another depending on the price swings. Smaller tokens were also hurt this time, resulting in some vanishing from the market. The overall crypto capitalization is just under $900 billion. In comparison, it was at a peak of $2.9 trillion in November 2021, the month Bitcoin reached its peak.
Stablecoins have fell too, which is a good indicator of how bad things are right now. However, some people still see this as an opportunity to jump into the market and make money when prices go up. If they ever.
One of them is El Salvador’s ‘presidente’ Nayib Bukele. Always the optimist, he commented on the country’s massive loss by saying that it’s time to hold onto your coins. El Salvador’s crypto decision has crashed the market in the past, but every time there’s a dip, Bukele instructs his government to buy more Bitcoin. The reserves are well down in value due to the latest price dips, but he believes it’s a game worth playing.
He may be right, as this isn’t the first time Bitcoin’s price falls down through the roof. All we need now is patience and HODL – give it a few months, and things might drastically change.