Bitcoin Has Reached a Two-Year Low
Bitcoin fell to a two-year low as the cryptocurrency market suffered due to the collapse of a major exchange.
BTC fell to $15,480, its lowest level since November 11, 2020. Since then, the digital currency has recovered and is currently trading at around $15,909.00.
The entire cryptocurrency market has lost more than $1.4T in value this year due to problems ranging from failed projects to a liquidity crisis, a situation exacerbated by the collapse of FTX, once one of the world’s largest exchanges.
The collapse of terraUSD, a so-called algorithmic stablecoin, sent shockwaves through the crypto world. It contributed to the demise of other entities, such as hedge fund TAC.
Higher inflation and other economic issues have harmed people’s wallets and company profits. The current environment has also weighed on cryptocurrency demand. However, the current economic situation has no bearing on the crypto world’s development. Developers, for example, continue to add projects on blockchains such as Ethereum (ETH -1.96%). And people continue to pay with Bitcoin or store value in it.
The prospect of cryptocurrency regulation may put some investors off. The fear is that it will destroy the freedom that the cryptocurrency market promises.
And regulation may be on the way. The White House released a framework. The document covers various topics, including potential market stability efforts and ideas for combating illegal activities.
As previously stated, cryptocurrency is one of the riskiest assets. However, this does not imply that a portfolio that includes cryptocurrency is high risk – and that one that does not is a safe bet. If you want to enter this innovative market while prices are low, there is a way to do so safely.
Consider the oldest and most powerful players: Bitcoin and Ethereum. They’ve both lost more than 65% of their weight this year. However, they have risen by more than 5,000% and 38,000%, respectively, since their inception. And, as the chart shows, they’ve been through tough times in the past – and recovered.