Although it is often recognized as the most valuable cryptocurrency in the world, the price of Bitcoin has almost fallen and is already below many new compounds.
The asset is trading at $20,000 per unit for the first time since November 2020, more than 70% below its all-time high of $68,000 per coin in November 2021. According to CNN, this comes on top of a string of ongoing losses lately. months.
CNN reports that Bitcoin has lost $900 billion in value since that peak.
The massive crash of cryptocurrencies is part of a larger market downturn caused by high inflation, high interest rates, the war in Ukraine, the COVID-19 pandemic shutdowns, and supply chain chaos.
However, nearly half of all bitcoin wallets are still profitable, according to a Columbia Business School analysis cited by the New York Times.
It is not unusual for the cryptocurrency market to fall by 85% to 90%. In the past decade, two prolonged declines in the cryptocurrency have caused Bitcoin to lose more than 80% of its value, although it has recovered.
For example, from 2017 to 2018, bitcoin fell by 83%, from $19,423 to $3,217. But as of November 2021, it’s worth $68K.