Virtually all digital assets have suffered from the seven-month-old crypto bear market. The top 100 cryptos by market capitalisation have fallen 90% or more since their peak.
This is to put it in perspective: The total digital asset market cap reached $3 trillion in November 2021. It has since fallen more than 70%, currently at $896 billion, according to data from coinmarketcap.
Cryptos are 90% down.
A large number of cryptocurrencies have suffered a severe decline. According to price aggregator coinGoLive, 13,240 cryptocurrencies, or 98.5%, are down 90% from their highs.
19 of the 196 coins have retraced less than 90% from their highs. This means the exact percentage is slightly lower.
Tokens with high market capitalisations have performed better than others. Only one of the top ten cryptocurrencies by market capitalisation has dropped 90%: $XRP. The rest are within 64-85%.
Flagship digital asset Bitcoin plunged 70.30% to $69,000 in November 2021. ETH has fallen 78.07% to $4,878.
Binance Coin (BNB), which is proving to be the most resilient, has a ‘just’ 68.77% drop from its ATH of $686.31 a year ago.
There are some coins that have been hit hard and are now near zero: $EOS 95.89%; $ICP – 99.22%; $BCH-96.96%; $HOT-93.433%; $SNX 93.87%; $DASH 92.10%, $WAVES 92.09%; $FTM 93.11%; $NEO 95.42. KLAY 94.44%. $GRT $96.52%. $Zcash 98.04%.
stablecoins are the only asset that has not seen a significant drop in market capitalisation. Despite the blowup by Terra’s $UST, the total market capitalisation for stablecoins currently stands at $156.5 billion. This is not far from its record.
Crypto crash: immediate cause
Cryptos’ crash could be due to increased inflation fears and the pause in withdrawals by the Celsius crypto lending service. Investors continue to avoid riskier assets which are also reflected in stock markets.
Experts believe that the plunge in crypto prices signifies a declining risk appetite among investors.
According to the Crypto Fear and Greed Index, investors’ sentiment is “extreme fear.”
Another argument is that the decline can be attributed to Bill Gates, a Reddit founder, who said: “I like investing in things with value. Companies are valued based on the quality of their products. A cryptocurrency’s value is determined by how much one person will pay.
Market Watch states that “some analysts anticipate the slide to continue.”
The bearish market has revealed a sad truth: most cryptocurrencies will eventually lose almost all of their value.
The current crypto downturn is likely to continue despite the record-breaking 41-year high inflation rate and the harsh monetary tightening policies of central banks worldwide.
He stated that as a long-term investor, he is looking for items that will trade significantly higher in the next 12 to36 months than they currently are.
Bitcoin trades at $20,568.91 as of press time, down by 3.32%. You’re left wondering how much lower it will go.
Ethereum is currently at $1,078.69. This is down 3.66% from press time.
Analysts cannot make projections. The reality of crypto markets is before us.