Predictions for the end of 2021 and the beginning of this new year have failed. The price of bitcoin is close to 35,000 US dollars and a rebound is not expected in the future.
Far away is the $100,000 that was predicted for bitcoin in December 2021. The more than volatile cryptocurrency market has gotten even crazier and many cryptocurrencies are falling to new lows since early 2022.
Despite the fact that this digital currency experienced a slight rise last Sunday, it has not been enough and today we rise close to 35,000 USD.
If bitcoin continues to trend down, there is a good chance it will drop to $25,000 before the end of January, creating even more mistrust and losing the great value it previously held.
And it is that there are quite a few causes that are generating this descent without brakes. Let’s take a look at some of these factors.:
Crypto.com suffered a massive hack last week after which, more than 500 customer accounts were trapped. After identifying some suspicious activity, the cryptocurrency exchange had to suspend withdrawals.
A total of 4,836.26 unauthorized withdrawals from Ethereum and 443.9 from bitcoin were recorded on Crypto.com. The total unauthorized withdrawal amounted to $30 million.
On the other hand we have the tightening of government regulations. The United Kingdom is preparing a regulation to limit the use of cryptocurrencies and put them under the surveillance radar. They have announced that digital tokens must meet the same standards as other financial models to prevent people from committing fraud and misleading investments.
On the other handRussia has also proposed a blanket ban on all cryptocurrencies in the country. Even cryptocurrency operations like mining will be banned if the implementation goes into effect.
The central bank of Russia has stated: “The breakneck growth and market value of cryptocurrencies is primarily defined by speculative demand for future growth, which creates bubbles.”
The increase in the number of cases of Omicron and the announcement of the Federal Reserve They have also affected prices drastically, since an environment of total uncertainty is generated.
Knowing all this, many analysts are not confident that this trend will change. Cryptocurrency investors imagined that 2022 would be a great year for all virtual assets.
And while the blockchain ecosystem is gaining prominence and features like decentralized applications, smart contracts, and NFTs are becoming the center of attraction, digital tokens are losing value.
In addition, the fall of bitcoin drags the rest of the cryptocurrencies. It has lost $600 billion in market valuation, while the cryptocurrency market has lost $1 trillion.