Cryptocurrencies have been hit hard. For a while, cryptocurrencies, which have been dominated by the bear market, have lost more than 50 percent in value. The leading cryptocurrency Bitcoin suffered a sharp fall. Various reasons have put pressure on cryptocurrencies. With Rothschild Investment’s purchase of Grayscale Bitcoin Trust, the charts started to turn green.
Cryptocurrencies have not yet recovered from the shock they have experienced. The decline, which started under the leadership of Bitcoin, spread to all other cryptocurrencies. Bitcoin fell from its historical high of $ 69,000 to $ 32 thousand. Thus, it has lost 52 percent of its investors in a short time since November.
While the losses deepened in the crypto money markets, which have been in the bear market since December, risks began to emerge one by one.
Inflation risks in global markets, the Fed’s move to increase interest rates, the geopolitical tension between Russia-Ukraine-USA, the deepening of losses in the US stock markets, the mining bans against cryptocurrencies, the slowdown of Cryptocurrency mining activities due to increasing energy prices, the strengthening of gold prices. Many factors have revealed the climate of fear in cryptocurrencies.
Bitcoin’s dominance is rising
Bitcoin has begun to increase its dominance in the cryptocurrency world. Bitcoin dominance, which fell as low as 39 percent, rose to 42 percent.
Fear index signals
Bitcoin’s fear index, on the other hand, did not reach normal levels. With the fear index at 12, investors seem to be worried. The rise is expected as Bitcoin recovers from the extreme level of fear. The lower the number in the fear index, the higher the fear rate, while the higher the number, it turns out that investors are greedy.
Bitcoin down over 50 percent
Bitcoin, which saw its historical high level of 69 thousand dollars in November, has always lost value after this stage. While the support-resistance levels of analysts and experts were wasted, Bitcoin, which was stuck in the clutches of the bear market, fell to 32 thousand dollars. Thus, it lost 52 percent of its value in a short time.
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