The price of Bitcoin does not stop falling. From the more than 64 thousand dollars that it was quoted at the beginning of 2022, now it barely manages to sustain itself above 15 thousand dollars. A brutal drop of 75 percent in less than eight months.
The rest of the cryptocurrencies follow the same path of the fall of Bitcoin. The price of Ether, the main token of the ethereum network, for example, is also on the floor, the same as Cardano, Solana and many others.
In parallel, companies linked to the crypto sector began to fall,
First there were some smaller ones, but then others such as FTX, one of the three largest exchanges in the world, began to explode.
With the fall of FTX, BlockFi also went bankrupt. This crypto-backed lending-focused exchange argued in its presentation the collapse of cryptocurrency prices and the FTX debacle.
Earlier, Genesis Global Trading paused all withdrawals for what it called an “abnormal volume of requests exceeding liquidity.”
Bitcoin crash?
It is in this context that one must understand the statements he made to Reuters Jad Fawaz, a cryptocurrency trader from Abu Dhabi: “I am almost bankrupt. I laugh because it doesn’t make sense to be more depressed and feel more frustrated.”
Dabi says he quit his job in real estate in 2021 to focus on doing crypto trading, but for the past few months he has seen his savings evaporate by the day. He assures that he has not slept for a week due to stress.
Industry statistics provided by Bitfinex say that the balance of Bitcoin on cryptocurrency exchanges, where investors transact, they fell from 3.1 million dollars a day to 2.3 million.
However, the balances of the wallet Self-custody did not grow at the same rate, which would indicate that people are getting rid of tokens, not storing them.
According to experts from Bitfinex“there are signs that a significant number have become so discouraged that they are exiting the crypto ecosystem.”
Linda Obi, a sector investor from the Nigerian city of Lagos who works at blockchain startup Zenith Chain told the same agency that “it’s not just a crypto winter season anymore,” adding: “It’s a massacre, because the FTX crisis was like a domino that knocked down others.”
That crypto investors lose savings is not new. An investigation of Bank for International Settlements (BIS)carried out between 2015 and 2022, says that between 75 percent and 81 percent lost money with their investment in the sector.
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