Bitcoin Seen Dropping To $22K As Bear Market May Linger For A While

As stocks plummet and inflation surges, cryptocurrencies appear to be following suit. In the past six months, Bitcoin, the largest cryptocurrency by market capitalization, has lost about half of its value. Currently, Bitcoin is selling at an average price of $29,700, and Glassnode has recorded an outflow of almost $1.3 billion, with a net discharge of nearly $700 million. Ether, the second-largest cryptocurrency, has lost more than 55 percent of its value. This does not even begin to address the TerraUSD scandal and its repercussions. Suggested Reading | Cardano TVL Sheds $205 Million Since Hitting All-Time High In the past week, crypto fund assets under management (AUM) reached their lowest level since July 2021. This was a result of the current price drop in cryptocurrencies and equity markets, which has been partially driven by the U.S. Federal Reserve’s decision to begin reducing its balance sheet this month. Bitcoin At An Inflection Point A senior market expert at Bloomberg Intelligence has cautioned that Bitcoin is at a so-called “inflection point,” which indicates that the cryptocurrency is positioned on a curve where it may rise or fall. A portion of the uncertainty leading investors to shun risky assets like cryptocurrencies is undoubtedly attributable to rising interest rates. With rising interest rates, tech stocks and cryptocurrencies have been severely impacted. According to Yash Patel, a ge...