2022 appears to have seen a slow start for cryptocurrency, with regular value erosions and markets falling in the red every day. According to CoinGecko data, nearly $700 billion has been taken out of the market since the beginning of 2018.
The sharp decline in crypto market capitalisation has added to the “crypto winter” jitters. It currently stands at $1.62 Trillion, a significant drop from its November 2021 record of $3.1 Trillion and $2.3 Trillion at the beginning of 2022. It is not unusual for the crypto market experience such dramatic, major drawdowns or volatilities.
For example, bitcoin’s price reached almost $230 in April 2013 after trading at just $13 in January. It fell to $68 just days later. The crypto market cap fell to $130 billion in December, from $850 billion in January.
Since the beginning of the year, bitcoin has fallen 16.5 per cent in seven days. Ethereum is losing 23 percent, and Solana is down 33%
However, these numbers are insignificant compared to the jitters that the crypto market felt during 2017-2018, also known as the “crypto winters”. Bitcoin surged to $19 497 on December 15, 2017 and plummeted to $13,831 six day later.
It traded at $6,359 in November 2018, and fell below $7,000 again in February 2018. The price was finally under $3,300 in the next month.
Bitcoin’s value fell by 99.9% in one day. This happened in 2014 when bitcoin news, which was then a major trade on the now-defunct Mt Goxx Exchange, saw a flash crash. A hack allowed bitcoin to sell for only a penny.