Bitcoin and altcoins have been facing losses for days. Many investors are wondering because of the weak performance: Has a new bear market begun? What’s next for Bitcoin and Co., what development do industry observers expect?
Bitcoin crashes – and drags altcoins into the depths
It had already become apparent in mid-December: The expected bull run is missing, the predicted price explosion to prices above 100,000 dollars no longer comes punctually to the end of the year. Afterwards, there was great hope among investors that the epic run would only be delayed for a few days to take place at the beginning of 2022.
But even that should not come true – on the contrary. All cryptocurrencies are falling, with them the market capitalization. It is currently struggling to stay above the $2 trillion mark, diving below it again and again. It currently stands at $1.99 trillion.
The bloodbath in numbers: Bitcoin, the most valuable cryptocurrency, has lost more than 10% within the last 7 days, currently trading at $42,342. Heavy losses also with Ethereum, the second-placed coin. It has fallen by 13.58% since the beginning of the year and currently costs only $3,224.
The list goes on and on: Binance Coin (BNB) complains of a loss of more than 11.4%, Ethereum competitor Solana (SOL) even comes to a massive 15.5%. For Cardano (ADA), on the other hand, it is 6.14%, Ripple’s XRP comes to 8.5%, Terra (LUNA) to 20% and Avalanche (AVAX) falls 19.26%.
What’s next for Bitcoin and Co.?
Many industry participants and analysts express confidence that BTC, ETH and most altcoins will be able to recover.
Sam Bankman-Fried, for example, founder of the crypto exchange FTX.com (also called “SBF”), does not assume that we are now back in a bear market. On Twitter, he writes:
“TO BE CLEAR, I’M NOT SAYING WE’RE IN A BEAR MARKET, BEAR MARKETS ARE MYTHS SPREAD THROUGH WILDFIRES, MARKETS ARE SOMETIMES EFFICIENT MACHINES
But in general, if things go down today, it doesn’t mean it’s going down tomorrow.”
Later, he adds “this time but seriously”: The crash is “not a crypto-specific or crypto-related movement”. Rather, “everything is in decline” – and crypto currencies would probably follow stocks.
Top on-chain analyst Will Clemente also suggests that Bitcoin will rise again. Clemente is considered one of the most noticed on-chain experts alongside the pseudonymous PlanB and the New Zealander Willy Woo.
In a tweet, he writes to his more than 533,000 followers in a nutshell:
But how low could Bitcoin fall now? The forecasts vary for this. However, many analysts do not expect a deeper decline below $40,000 before BTC resumes its upward trend towards $100,000.
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Cryptocurrencies are a very volatile, unregulated investment product. Your capital is at risk.