Over the last year, cryptocurrency was able to gain a ton of traction thanks to the fact that the biggest cryptocurrency in the world, Bitcoin, had reached an all-time high of $69,000 per coin. As for the second-largest cryptocurrency, Ethereum had reached a price of close to $5000. These price increases led to huge gains for investors, however, those who invested at the top ended up holding the bags of those who got out.
Ever since last October, Bitcoin has been on a massive and steady decline that culminated in disaster this week. Essentially, a currency called UST experienced a huge crash which ultimately led to a massive drop off in price for a cryptocurrency called LUNA. This led to instability in the market, and investors began to panic sell their holdings.
Mario Tama/Getty Images
As CNBC reports, Bitcoin went all the way down to about $26K which is its lowest price in about 16 months. Meanwhile, Ethereum is below $2K, which just goes to show how much the market is suffering right now. There is no telling if this is the bottom yet, however, it is becoming crystal clear that investors do not have much faith in the crypto ecosystem right now.
This news has essentially given crypto haters a ton of fodder for their narrative, so it will be interesting to see if and when crypto recovers.