Cryptocurrency prices are plummeting. According to one estimate, crypto assets have lost around $1.35 trillion ($1.9 trillion) in value since November, with some crypto price crashing by as much as 80%. Many investors are in a tight spot. The good news is that world economy isn’t poorer. As a result, there won’t be much of an economic response to the new prices. Crypto Price Fall Dominates Headline The recent crypto news has been dominated by the price collapse of numerous major currencies. Since November, the price of bitcoin has been dropping. The price of cryptocurrencies has also dropped in the last week, according to reports, due to new US regulations on digital assets. Bitcoin’s price dropped from $69,000 in November to $32,951 last week. Bitcoin Price Chart. Source: Bloomberg Ethereum’s price has plummeted to roughly $2,400, down from nearly $5,000 at the end of 2021. Top cryptocurrencies like XRP, Solana, BNB, and Cardano have had their value plummet by up to 30%. The big crypto meltdown of 2022 wiped out $1.5 trillion from the industry as a whole. The impact of the cryptocurrency meltdown on the rest of the economy is minimal. The $1.5 trillion in losses is only approximately 6% of the US GDP. Second, the cryptocurrency ecosystem is largely detached from the rest of the economy. Because banks have avoided crypto, the crash has had little effect on the financial market. Many have held on to the ...
