Bitcoin price plunges to six-month low

Analysts Fear ‘Crypto Winter’ Is Coming

After a week of violent crashes, bitcoin has stabilized somewhat.

The token took a series of hits, falling more than 20% last week. It has since stopped falling so sharply but is still down more than 4% in the last 24 hours.

The world’s most popular cryptocurrency is still worth £25,187.27, down sharply from its high of £51,000.00 in November 2021.

Read more:What is bitcoin and how does it work? 

Bitcoin’s decline has reverberated throughout the market, causing other cryptocurrencies to suffer more severe losses. Ether fell nearly 30%, bringing its value to £1,674.61. This time last year, it was hovering around £2,300.

Meanwhile, Cardano fell 35 percent to a value of 72 pence.

What has Bitcoin and the market crashed?

The cryptocurrency market is collapsing due to a massive sell-off by investors, who pulled out as the Federal Reserve announced the cancellation of its pandemic financial support program and hinted at higher interest rates to come.

This also comes after Russia announced plans to curb cryptocurrency mining and trading in the state, following a total ban in China and riots in Kazakhstan that led to a mass exodus of miners.

This latest crash clearly shows how investors are currently operating the market: speculative buying and selling based on volatile market prices

The sell-off triggered a sharp drop in the global cryptocurrency market, with market capitalization evaporating by $1.4 trillion.

It has hit major companies like Apple and Netflix, as well as the stocks of billionaires Elon Musk and Jeff Bezos.

The drama sparked fears of a “cryptocurrency winter” or a long-term bear market with continued price declines as analysts warned prices could continue to plummet.

The crypto winter of 2018 saw most cryptocurrencies depreciate 90% of their value.

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