Virtually all digital assets have suffered from the seven-month-long crypto bear markets. All of the top 100 cryptos by market capitalisation are down almost 90% from their respective peak.
For a better understanding, the digital asset market total reached $3 trillion in 2021. Since then, it has fallen more than 70% to $896 billion. Coinmarketcap Press time
Cryptos are 90% down
A large majority of cryptocurrencies have experienced a major decline. Data from price aggregator CoinGoLive the current decline in cryptocurrency prices is 90%, or 13,240.
19 of the 196 coins have retraced less that 90% from their highs. This means the exact percentage is slightly lower.
It is a sign that tokens with high market capitalisation have performed better than other cryptocurrencies. The market cap of only one of the top 10 cryptocurrencies has dropped below 90%. $XRP other indicators are in the same range of 64-85%.
Flagship digital asset Bitcoin plunged 70.30% to $69,000 in November 2021. ETH has fallen 78.07% to $4,878.
Binance Coin (BNB) is proving to be the most resilient of them all, with ‘just’ 68.77% decrease from its ATH of $686.31 a year ago.
Some of the coins in the top 100 that are badly hit, and now close to zero are $EOS 95.89%, $ICP – 99.22% $BCH – 96.96% $HOT – 93.43%, $SNX 93.87%, $DASH 97.10%, $WAVES 92.09%, $FTM 93.11%, $NEO 95.42, KLAY 94.44%, $GRT $96.52%, $IOTA 94.95% $Zcash 98.04% and so many others.
The only asset class that hasn’t suffered a significant drawdown in market capitalisation is stablecoins. Despite the blowup of Terra’s $UST, the current total market capitalisation of stablecoins is around $156.5 billion, not much lower than its record size.
Crypto crash: immediate cause
Cryptos’ crash could be due to increased inflation fears and the pause in withdrawal by Celsius crypto lending service. Investors are still avoiding riskier assets. This is also evident in the stock market.
Experts believe that the plunge in crypto prices is a sign of a declining risk appetite among investors.
Investors’ sentiment is now “extreme fear,” according to the Crypto Fear and Greed Index.
In another argument, the decline is being attributed to comments made by Bill Gates on Reddit, in which the Microsoft founder said: “I like to invest in things that have value. Companies are valued based on the quality of their products. The value of crypto is just based on what one person decides how much another person will pay for it.”
According to Market Watch, “some analysts expect the slide to continue.”
The bear market is exposing a sad reality: most cryptocurrencies will eventually lose all their value.
There seems to be no end to the current crypto downturn, given the 41-year-old record high inflation rate as well as the severe monetary tightening policy by global central banks.
But, Mr. Dorman is the chief investment officer at Arca, said his firm is maintaining a higher cash balance but isn’t afraid to put money to work for good opportunities.
“As long-term investors, we are looking for things that, in the next 12 to 36 months, we believe will be trading significantly higher than where they are trading today,” he said.
Bitcoin is currently trading at $20.568.91 at press time. This is down 3.32%. It’s hard to believe how far it can fall.
Ethereum is at $1.078.69, down by 3.66% at press-time.
Analysts cannot make projections. The reality of crypto markets is before us.