Bitcoin has lost 75% of what it earned in 2021 in two months: a crash of more than $30,000

2022 has not started well for crypto investors. Overall, the market has experienced a huge drop that, just last Friday, made cryptocurrency owners lose $204 billion in 24 hours, according CoinMarketCap data. This sharp decline in recent days deepens the depression that has been looming since the beginning of the year and that has made currencies as popular as Bitcoin have lost much of the value they added throughout 2021.

Thus, so far this year the value of Bitcoin has dropped around 17%, which has erased approximately 75% of its 2021 gains. However, it is not one of the large cryptocurrencies that has suffered the most from this latest collapse of the market: Ethereum is down about 25% since Jan 1, and Solana is down 30%.

These falls have caused the value of the cryptocurrency market to reach its lowest level since last July 2021, when it also went through a significant depression and then progressively recovered value until reaching its all-time high in November.

Analysts attribute this fall to the uncertainty generated in the markets by the Ukraine crisis and by the Bank of Russia’s proposal to ban both the mining and the use of cryptocurrencies in its territory. A suggestion that, if finally carried out, will deal a serious blow to the exchange of crypto assets, since the Russian Federation is one of the three countries where the most cryptocurrencies are mined in the world*.

The stock market, also in low hours

The cryptocurrency market is not the only one going through a major downturn. Stock markets, especially those in the United States, have experienced sharp falls in recent weeks as a result of the announcement of the tightening of monetary policy by the US Federal Reserve to try to curb inflation, which will mean that there will be much less money in circulation.

In fact, last week the stock markets, as a whole, registered the worst figures in more than a year, according to the Financial Times.

The company most affected by this fall has been, so far, Netflix, whose shares fell 22% last Friday after signaling that the growth of its subscribers was going to slow down. That drop caused them to lose around 49 billion in value.

Imagen: Coinmarketcap