Crypto lost value: BTC dropped below 50% while Terra based Luna is beyond recovery
The stock assets of cryptocurrency have dropped quite significantly. Recently, Bitcoin just dropped 10% of its total assets, and now they are below the amount of 31,000 USD.
Most of the stock shares of cryptocurrency belong to Bitcoin (BTC). The fall in its value started at the start of November. On the 25th of January, Tuesday, the price of BTC was nearly 50% less than its November peak price, which was 40,000 USD.
Coin Metrics said BTC's price dropped approximately 10.5% to 30,953.94 US dollars. The last time its price dropped below 50% was in July, 29,839.80 USD, and the drop rate during that time was almost 53%. Ethereum's price dropped about 11.6% to 2,269.39 USD, though Ether doesn't hold as many shares as BTC in cryptocurrency's stock assets.
The reasons for Bitcoin and other cryptocurrency's prices are mostly related to the United States government. The U.S. government made a strategy that would be applicable soon, and the strategy was to supervise digital assets like BTC, Ethereum, Zcoin, Tether, and so more. The United States Federal Reserve has issued gradual belt-tightening, which is also responsible for the price drop of crypto or rather we should say Bitcoin.
The Biden administration's strategy is most likely to be the main cause of affecting the stock price of crypto. This strategy includes examining the value of digital assets to bring harmony to society. Not long ago, Elon Musk himself could control the market price of Bitcoin all by himself. To eliminate the control of a respected citizen of the United States over digital assets, the Biden administration has taken such measures, which affected the price of BTC in the stock market.
Risk Rituals Newsletter's author, Dr Richard Smith, has said in an interview that his statement reflected a frustration towards Mark Zuckerburg's metaverse and the recent uprising of NFTs: "The reason that this particular 50% fall is occurring right now is that market narratives have shifted from risk-on to risk-off."
Uber is afraid of the recent price downfall of Bitcoin. Not only Uber but also the other investors of BTC are also concerned about their share there. Of course, the stock market trends change from time to time, so concern about them is indiscreet at the same time reasonable because sometimes investors face a great loss due to the stock market trends.
The Chief Executive of Uber, Dara Khowrowshahi, has expressed his humble opinions about the whole situation: "It's clear that the market is experiencing a seismic shift, and we need to react accordingly."
His caution to his fellow investors is somewhat valid in the eyes of many stock investors, though this isn't the first time Bitcoin has faced such a price drop. So, the investors shouldn't be afraid of the price drop. When the government strategies and policies change, the prices will go up, as these are why the downfall in BTC's price was triggered.
It is the 5th time the price of Bitcoin has fallen below 50% ever since 2009, when it first listed its share in the stock market. This gives hope to many investors that the prices will eventually bounce back to where it always was, and maybe they will gain a higher price when the trend changes. Not to mention that personalities like Elon Musk also hold a significant share of Bitcoin. Hence, there is a lot at stake depending on the price value of cryptocurrency.
While BTC and ETH are down by a phenomenal margin, investors and crypto experts are saying they will again buy-in when their price goes down another 50 per cent. Luna, on the other hand, was one of the most stable coins in the crypto world. Each Luna had a value of over $110, but now people can buy millions in a couple of dollars. Young investors are keen on Luna purchases, while the biggest crypto exchange platform, Binance, is continuously pausing and resuming the withdrawal and selling feature.