Sign cryptocurrency is dead as bitcoin dips to $17k

Bitcoin has pretty much lost all its gains throughout the pandemic and hit a new horror low that will make history.

Cryptocurrencies including bitcoin, ethereum, BNB, cardano and Ripple XRP have faced a tough year, with fluctuating values and more.

And it doesn’t look like the downward trend will turn around any time soon, reports The Sun.

Bitcoin, the world’s top-ranked cryptocurrency, has dropped by nearly 7.5 per cent in the last day.

At the start of last month, bitcoin was trading at US$36,141.33 (A$52,000), according to CoinMarketCap.

But now, a month and a half later, the outlook is even worse.

As of Sunday morning AEDT, bitcoin fell as low as $US17,601.58 (A$25,300) and stayed below $US20,000 according to CoinDesk. It is currently trading at US$18,900 (A$27,200).

That’s a loss of about 15 per cent from Friday, and represents a whopping 74 per cent dip in value since its all-time high in November when it nearly hit US$69,000 (A$99,000) per coin.

In fact, all bitcoin’s gains over the last two years of the pandemic have pretty much been wiped - BTC hasn’t been this low since October 2020.

Bitcoin has pretty much lost all its gains throughout the pandemic and hit a new horror low for 2022.

Cryptocurrency is on a downward spiral and has lost all its gains over the past two years. Picture: iStock.

Other cryptocurrencies were following similar trends, with sellers like ethereum, cardano and solana falling upwards of four per cent in just one day.

Admittedly, the stock market overall is down as investors sell risky assets, and the values are tightly linked, meaning a dip all around.

The latest plunge follows a crypto crash at the start of December, shortly after bitcoin hit a record value of US$69,000 in November.

One trader lost $5 billion after the price of bitcoin plummeted in December, highlighting the risks of investing in crypto.

And in another recent blow to the market, Crypto.com users were unable to access funds due to “unauthorised activity” on some accounts.

Last year users of cryptocurrency exchange Binance were unable to access their cash after suspending UK withdrawals.

And Etoro customers were locked out of their accounts after the service went down during a crypto crash.

To top that off, UK-based cryptocurrency lending company Celsius Network suspended all transactions on Monday as the bloodbath continued. Its 17 million users are still suspended.

.@CelsiusNetwork is pausing all withdrawals, Swap, and transfers between accounts. Acting in the interest of our community is our top priority. Our operations continue and we will continue to share information with the community. More here: https://t.co/CvjORUICs2

— Celsius (@CelsiusNetwork) June 13, 2022

Bitcoin ATM in New York City. Picture: Michael M. Santiago/Getty Images/AFP

Why have crypto markets been down?

Cryptocurrencies have been especially volatile lately and there a few reasons why.

Twitter’s chief financial officer Ned Segal said at the end of last year that investing in crypto “doesn’t make sense right now”, causing concern among Silicon Valley buyers.

China also announced plans to clean up virtual currency mining, according to CNBC.

Many crypto-mining regions in China are now radically reducing operations.

Previous moves by the country to crackdown on mining and trading of crypto has previously sent markets plunging.

Crypto volatility

Cryptocurrencies are highly volatile, meaning their values often make large swings with no notice, as the latest plunge shows.

Investing in cryptocurrency is a very risky business.

You can be left with less money than you put in, and could even lose it all – even if you spend on what appears to be a safe bet.

You might not be able to access your investment if platforms go down and you could be left unable to convert crypto back into cash.

There have also been warnings around scams related to cryptocurrencies, with people losing vast sums of money.

You should never invest in something you don’t understand and you should never put in money that you can’t afford to lose entirely.

This article appeared in The Sun and was reproduced here with permission.