He bitcoin shows its followers why it is the most volatile and least stable asset to invest in. So far this day, the cryptocurrency has reached $91,667, according to Bloomberg. This value represents a drop of around 27% if you take into account that in October it reached a maximum of $126,000.
According to data from CoinGecko, the total value of the global cryptocurrency market lost around $1.2 trillion, having gone from $4.4 trillion on October 7 to $3.2 trillion today.
According to the Financial Times, the massive sell-off in bitcoin is due to concerns about the high valuations of technology companies and the trajectory of interest rates in the United States.
“The cascading sell-off is amplified by listed companies and institutions closing positions after having increased their exposure during the rally, exacerbating contagion risks across the market,” said Joshua Chu, co-chairman of the Hong Kong Web3 Association, according to a Reuters note.
“When support weakens and macroeconomic uncertainty increases, confidence can erode with surprising speed,” he noted.
Will it continue to sink?
Everything indicates that bitcoin will continue to report losses. In the options market, traders are betting on a further decline in the crypto asset, convinced that the crash is far from over.
“The absence of conviction-based spot demand has become increasingly evident, as buyers who built up positions over the past six months are now significantly in the red,” Chris Newhouse, director of research at Ergonia, a specialist finance firm, told Bloomberg Line.
Crypto hoarders such as Strategy (MSTR.O), miners Riot Platforms (RIOT.O) and Mara Holdings (MARA.O), and the Coinbase exchange (COIN.O), have retreated along with pessimism about the cryptocurrency’s trajectory.
The cryptocurrency ether has also been under pressure for months and has lost almost 40% of its value since the August high above 4,955.
bitcoin ETF
Another business that has been punished by the loss of value of bitcoin are the ETF funds that invest in them.
The IBIT (iShares Bitcoin Trust), the bitcoin ETF listed on the Lima Stock Exchange (BVL) and whose valuation rose 32.8% as of October 7, erased gains. As of yesterday, it has been losing 4.13% of its value.
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