Going ‘To Zero,’ that was the headline from Forbes Magazine early this morning. As the bubble finally popped? Just last month, the world’s most popular cryptocurrency was trading above $41,000. In just three weeks, Bitcoin has lost more than half its value from its all-time high of $67,000.
Now for the first time since 2021, Bitcoin has plunged below $30,000 as macro events including surging inflation, tighter monetary policy, and Russia’s invasion of Ukraine, caused investors to shun risky assets. The price of bitcoin fell about 7% to $29,196.10, according to Coin Metrics. Bitcoin has since climbed back up to $29,711 as of the time of writing.
Bitcoin is not alone. The carnage also spreads to Ether, which also was down 8% to $2,160.46. The panic sell is now sweeping across the entire crypto markets as Bitcoin, Ethereum, BNB, XRP, Cardano, Solana, Terra’s Luna, and Avalanche lost their values.
Meanwhile, 40% of bitcoin investors are now underwater on their investments, according to a report from CNBC, citing data from crypto research firm Glass node. Bitcoin is off nearly 55% from its November peak.