“How Much Will Cryptocurrency Fall?”
“Well, to be honest, I think it’s just the beginning of the crypto winter.”
Recently interview Delta Blockchain Fund founder Kavita Gupta, along with Bloomberg Technology, noted that the current crypto market is currently winter season and could last more than a year. Referring to similar price movements in the past, she said:
“To be honest, I think this is just the beginning of the crypto winter. I was very surprised that people thought it would keep hovering around $30,000. We expect it to drop between $14,000, $18,000 or $22,000 in stable points.”
So, is winter really here?
chip is down
The total market cap of cryptocurrencies, which recently stopped supporting $1.6 billion, has been hit hard since early 2022. Starting this year with a market cap of $2.2 trillion, the total cryptocurrency market cap has declined 45% in just 141 days. Do business with The total crypto market cap in descending channels since early May was $1.26 billion at press time.
How Mighty Fallen
Bitcoin, the world’s largest cryptocurrency by market cap, has seen price fluctuations since the 10th. Additionally, the token has recorded daily closing prices between $28,000 and $31,000 in the last 10 days.
The coin’s price, which currently stands at $29,515.33 at press time, underwent a serious decline in May, which further pushed its price down. The recent bearish performance of the S&P 500, along with its strong correlation with the stock market, has brought Bitcoin to its knees and investors have lost more confidence in the coin.
Similarly, the event that led to the collapse of TerraUSD (UST) on May 12 contributed to the coin’s extinction, which saw the Terra Foundation emptying its Bitcoin holdings to store stablecoins. After dropping 57% from ATH of $68,789.63, the road to Bitcoin recovery could be far, with the possibility of a recession in the US as the stock market continues to record plummeting figures.
Of course, altcoins are on the decline.
After showing a strong correlation with Bitcoin, the total value of altcoins also declined significantly. The total market cap of altcoins, which has fallen 45% since January 2022, was $689 billion at the time of reporting.
Regulatory activity during the Depegging series
with Terra’s UST Leading the plague so far, three More examples of other stablecoins losing $1 peg have been recorded. This has provoked an enthusiastic response among regulators around the world who are currently trying to regulate the crypto space. As the years go by, regulations are likely to increase, which could reduce investor confidence and cause the prices of various cryptocurrencies to fall further.