Cryptocurrencies Continue Dramatic Slide as Bitcoin Drops to 6-Month Low
Cryptocurrencies continued their dramatic slide over the weekend, with bitcoin losing nearly half of its value since hitting its November high.
Bitcoin’s price plunged below $34,000 USD Monday morning, extending a slide that started when it dropped below $40,000 Thursday evening. Bitcoin leveled off above $35,000 USD Sunday after several drops below that on Saturday.
Bitcoin’s fall in recent days marked second time it dropped below $40,000 USD this month, and the first time it dropped below $34,000 since July 2021. The big drop for Bitcoin — Ethereum saw a big drop too — came amid the stock market’s worst week in nearly two years, and after the release of the Federal Reserve’s long-awaited report on a possible government-issued digital currency.
The volatility and stalling price also continues alongside new economic uncertainty over the Omicron COVID-19 variant, new statements from Federal Reserve Chairman Jerome Powell on the health of the economy, and ongoing comments from U.S. officials like SEC Chairman Gary Gensler on cryptocurrency regulation.
Despite falling back significantly from its latest all-time high price, many experts still expect Bitcoin’s price to rise above $100,000 USD at some point — describing it as a matter of when, not if. Shortly after Bitcoin’s latest all-time high, Ethereum marked its own new all-time high when its price went over $4,850 USD. Ethereum, too, has seen similar volatility following the latest high.
Vocal supporters of bitcoin and other cryptocurrencies suggest they have the potential to transform finance and are pushing for crypto to edge further into mainstream use as a store of value or a payment alternative. But many people are buying — and, increasingly selling — crypto as a speculative bet in hopes of turning a quick profit.
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