Bitcoin price stabilises partly after latest crypto market crash – but stays down

Ethereum and cardano have seen even more substantial drops

Andrew Griffin
Monday 24 January 2022 10:24
<p>Pyongyang targeted investment firms and exchanges. </p>

Pyongyang targeted investment firms and exchanges.

Bitcoin has stopped crashing quite so dramatically – but is still continuing to fall.

In recent days, the cryptocurrency has been hit by a run of major plunges that have left it down almost 20 per cent over the last week. The drops have been even more significant in other cryptocurrencies: ethereum is down 29 per cent over the same period, for instance, and cardano has dropped almost 34 per cent.

On Monday, those dramatic falls have calmed somewhat. Bitcoin is down just 4 per cent over the last 24 hours – relatively stability given the crypto market’s recent troubles.

It still means that bitcoin has had a terrible start to 2022. Anyone who bought cryptocurrency at the start of the year has seen the value of their holding drop by more than 25 per cent.

The performance is a marked departure from the summer, which saw bitcoin trade up so much that it hit a record high of almost $68,000 by mid-November. It has continued to trade down fairly consistently since.

The market as a whole is down 5.6 per cent over the last day. That, similarly, is a substantial drop but much less than some recent days over the last week.

Trading volumes have also slowed a little. The amount of cryptocurrency being traded has dropped more than 30 per cent over the last 24 hours, according to tracking website CoinMarketCap.

The drops have come amid a difficult time for cryptocurrency, which has faced potential bans in Russia, as well as a clampdown in mining in Kosovo and Kazakhstan.

The recent falls in crypto also matched drops in more traditional assets over the last week. Many stocks were also down last week, amid rumours of interest rate hikes and indications from the US central bank that it would move on from its coronavirus-era policies.

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