Those who decided to bet on Bitcoin earlier this year have seen their investment fall by more than 38%. Global factors have led cryptocurrencies and other riskier assets to come under pressure and sustain depreciation. Bitcoin hit a high of $67,729 at the end of last year, showing 3.4% growth over the past five years. However, 2022 has taken its toll on those gains. Although analysts raised $30,000 as a key threshold, the fall of the main electronic currency dragged down the crypto universe along with crypto investors, leading to a crypto crash. Almost half of the current year has gone by and the crypto market has already lost around $1,000 million. According to some experts, this digital exchange market is on the verge of ‘crypto winter,’ a term crypto investors use to refer to a sustained depreciation in the price of digital currencies, which can lead to a possible crypto crash. Cryptocurrencies have fallen to a greater extent due to the complex macroeconomic context, the high level of inflation, and the increase in interest rates by the Federal Reserve, which have strongly affected all markets. Bitcoin currently has a remarkable correlation with the US stock market indices, particularly the Nasdaq, as it is a technology sector. For this same reason, cryptos have fallen in price, according to Andrés Hoyos, co-founder of TradeMate. Main Recommendation The main recommendation is to wait and closely monitor the virtual currency...
