Cryptocurrency market dips below $1 trillion as Bitcoin nears its lowest price of 2022

[midian182]

What just happened? Bitcoin is crashing once again. The world's most popular cryptocurrency fell as low as $18,620 earlier today, marking its second-lowest price this year; the coin was briefly at $17,600 in June. BTC wasn't the only digital asset to suffer as coins including Ether also saw their prices drop, causing the global cryptocurrency market to fall below the $1 trillion mark.

Bitcoin is down more than 6% so far this week. Ethereum, the second-largest crypto by market cap, dropped from $1,678 on Tuesday to $1,493 a few hours ago. It seems the crypto winter that followed the collapse of TerraUSD in May is showing no signs of ending.

The crypto market fell below $1 trillion following the TerraUSD incident. A slight resurgence followed, but it's back below the milestone. It's a far cry from November 2021, when Bitcoin hit its peak price of $69,000 and the global cryptocurrency market peaked at $2.9 trillion.

Bitcoin's price over the last year

While there are several factors behind crypto's struggle, surging interest rates are having the biggest effect. The US Federal Reserve has repeatedly hiked interest rates by a total of 2.25%, pushing inflation to its highest level in more than 40 years. Chairman Jerome Powell warned that the central bank would continue raising them, causing "some pain" to the US economy.

CNBC writes that policy tightening by the Fed has strengthened the dollar, which has weighed on risk assets. The 10-year US Treasury yield has also surged.

There is some hope for crypto owners: the Merge, Ethereum's long-planned and often delayed move from the current proof-of-work model to proof-of-stake. The Ethereum Foundation says it will happen sometime during the middle of this month. Not only could it push graphics card prices down even further, but it might also attract more ETH buyers and give the overall digital asset market a boost.

The crypto winter has devasted holders and businesses. The largest Bitcoin mining companies lost over $1 billion last quarter, forcing them to sell mining rigs to stay afloat; Celsius went bankrupt; and OpenSea, the world's biggest NFT marketplace, cut 20% of its jobs.

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https://www.techspot.com/news/95892-cryptocurrency-market-dips-below-1-trillion-bitcoin-nears.html

 

[ScottSoapbox]

"Reserve has repeatedly hiked interest rates by a total of 2.25%, pushing inflation to its highest level in more than 40 years."

This statement is absolutely wrong.

Inflation is driven by low interest rates, the Fed "printing" money, and other monetary policies that increase the money supply.

 

[Bl00dyMinded]

Haters don't want to hear it. But those who invest in Crypto its the perfect time to buy as it dips.

 

[R00sT3R]

Haters don't want to hear it. But those who invest in Crypto its the perfect time to buy as it dips.

Crypto Miners don't want to hear it but they're nothing but parasitic scum, contributing nothing to the World.

 

[m4a4]

Crypto Miners don't want to hear it but they're nothing but parasitic scum, contributing nothing to the World.

And yet, it's always the crypto-haters like you that seem the most toxic of the bunch...

Always around to toxicify any forum that mentions crypto, instead of having an honest conversation (like how almost every investment is down).

 

[George Keech]

"Reserve has repeatedly hiked interest rates by a total of 2.25%, pushing inflation to its highest level in more than 40 years."

This statement is absolutely wrong.

Inflation is driven by low interest rates, the Fed "printing" money, and other monetary policies that increase the money supply.

Agreed just a factually incorrect statement on the article - Even where inflation is from is so many factors at the moment.

 

[McMurdeR]

Haters don't want to hear it. But those who invest in Crypto its the perfect time to buy as it dips.

Rather than lead with a throwaway emotive comment, I'd take a more rational approach.

Given that Crypto values seem to be tied so closely to the supply of Government backed fiat, I'd wait until they start talking about interest rate cuts!

 

[emmzo]

Uneducated crypto investors (Moonboys) think past performance guarantees future results. Nope. Once this bubble completely collapses, it may never get back. Will ETH merge change this course? Briefly. Perhaps a quick pump and dump. Nobody has a crystal ball, but right now, economic factors are just not good for a degenerate market like crypto. It could take 2,3, 10 years to get back to last year or it could crash and burn or it's just gonna linger in a perpetual winter.

 

[Inthenstus]

Bitcoin is dead, it won’t revive. With ETH going POS, it’s the new king. Millions of potential investors haven’t purchased it because it’s wasteful. Until Bitcoin transitions to POS, it will continue tanking while the masses move to ETH2. Invest now while it’s affordable. The merge is soon!

 

[PEnnn]

Haters don't want to hear it. But those who invest in Crypto its the perfect time to buy as it dips.

Knock yourself out, go for it!!

PS: That thing behind you?? Is the writing on the wall!!

 

[GoldenGoat]

Crypto Miners don't want to hear it but they're nothing but parasitic scum, contributing nothing to the World.

They are contributing... to global warming. So there is that.

 

[ZedRM]

Crypto Miners don't want to hear it but they're nothing but parasitic scum, contributing nothing to the World.

And yet, it's always the crypto-haters like you that seem the most toxic of the bunch...

While you might be right, he's not wrong. Cryptominers and their ilk are a greedy, parasitical bunch.

 

[defaultluser]

Proof of stake is going to kill bitcoin; there's no point in owning a GPU mining center when nothing else besides Eth makes you any money

sure, forks will happen, but if you clutter the market with two dozen differed "Etherium Classics" in first two months, its going to take yeas to find the winner of that huge battle (and during that time, efforts wll be divided, slowing the progress of each coin gaining interest)! And while you're all waiting, the only ones making any money are the big fish who can afford dedicated bitcoin mining systems

Etherium POS will eventually kill-off even the most hard-headed GPU miners, and thus simultaneously thin-out bitcoin mining interest

 

[wiyosaya]

And yet, it's always the crypto-haters like you that seem the most toxic of the bunch...

Always around to toxicify any forum that mentions crypto, instead of having an honest conversation (like how almost every investment is down).

Yes, I agree. Almost every investment is down, but not to the extent that crypto is.

As I see it, it is difficult to classify crypto as an investment in the usual sense of the word since that usually applies to stocks, bonds, mutual funds, etc. Crypto does not belong to the same class of "investments".

 

[kapital98]

Agreed just a factually incorrect statement on the article - Even where inflation is from is so many factors at the moment.

Agreed. Raising interest rates is a textbook way to decrease inflation by raising rates (raising rates increase the cost of investment; increasing the cost of investment has a multiplier effect on aggregate demand; decreasing aggregate demand, all else equal, will decrease economic activity and lead to lower inflation -- MV = PQ for a shorthand monetary equation).

 

[Theinsanegamer]

And yet, it's always the crypto-haters like you that seem the most toxic of the bunch...

Cryptobros have infested many communities with their nonsense, and obliterated the GPU market for over a year while many of us were stuck at home. Doesnt take much to see why they are greeting with instant hostility.

Always around to toxicify any forum that mentions crypto, instead of having an honest conversation (like how almost every investment is down).

Ok, lets do that. The S&P 500 is down 23%. The NASDAQ 33%.

https://www.cnbc.com/2022/06/13/sp-...market-according-to-sp-dow-jones-indices.html

Crypto, meanwhile? Well, bitcoin has fallen 70%. Coins like luna are effectively down 100%. Celsius and voyager digital are bankrupt.

https://www.bloomberg.com/news/arti...fferent-from-the-past?leadSource=uverify wall

Oh, and the market is chock full of scams, from rug pulls to ponzi schemes to pyramid schemes, and theft from crypto wallets and projects. Theft is up by over 60% this year alone

https://www.reuters.com/markets/us/...ed-60-19-bln-jan-july-chainalysis-2022-08-16/

Oh yeah, and if you put money into broker platforms, well its not yours anymore, because they are not banks and there is 0 regulation.

https://www.cnn.com/2022/06/09/success/crypto-accounts-legal-protections/index.html

Of course, crypto bros will label all of this as FUD, because anything that threatens The Narrative (tm) must be stopped at all costs. The crypto market is a giant greater fool scam, and now that fewer are putting liquidity into the system the entire market is in free fall.

 

[Thatsdisgusting]

What's the connection between crypto itself and mining scum? Well, doesn't matter, cause all the ties are gonna break soon)

 

[m4a4]

Cryptobros have infested many communities with their nonsense, and obliterated the GPU market for over a year while many of us were stuck at home. Doesnt take much to see why they are greeting with instant hostility.

Infested? Lol, you people only prove my point.

 

[Hodor]

Crypto Miners don't want to hear it but they're nothing but parasitic scum, contributing nothing to the World.

It's true. However, since we're unfortunately living in a world of parasites, the biggest of them being banksters, and big corporations overinflated through wall street, and all kinds of "filantropists" who are ruining our world, there's nothing wrong in ordinary people doing the same, but on an hugely smaller scale.

The world is going down the drain anyway. Look what's happening, what's normal is being declared insane, and what's insane is now normal. So, unless something saves us (won't happen) or unless we become united against abnormalities (won't happen) there's nothing else to do than to play this crazy game.

 

[umbala]

Haters don't want to hear it. But those who invest in Crypto its the perfect time to buy as it dips.

That sounds like a solid strategy. I mean, someone has to end up holding the bag when the whole get rich quick scheme goes tits up, might as well be YOU.

 

[Karlos95]

Cryptobros have infested many communities with their nonsense, and obliterated the GPU market for over a year while many of us were stuck at home. Doesnt take much to see why they are greeting with instant hostility.


Ok, lets do that. The S&P 500 is down 23%. The NASDAQ 33%.

https://www.cnbc.com/2022/06/13/sp-...market-according-to-sp-dow-jones-indices.html

Crypto, meanwhile? Well, bitcoin has fallen 70%. Coins like luna are effectively down 100%. Celsius and voyager digital are bankrupt.

https://www.bloomberg.com/news/arti...fferent-from-the-past?leadSource=uverify wall

Oh, and the market is chock full of scams, from rug pulls to ponzi schemes to pyramid schemes, and theft from crypto wallets and projects. Theft is up by over 60% this year alone

https://www.reuters.com/markets/us/...ed-60-19-bln-jan-july-chainalysis-2022-08-16/

Oh yeah, and if you put money into broker platforms, well its not yours anymore, because they are not banks and there is 0 regulation.

https://www.cnn.com/2022/06/09/success/crypto-accounts-legal-protections/index.html

Of course, crypto bros will label all of this as FUD, because anything that threatens The Narrative (tm) must be stopped at all costs. The crypto market is a giant greater fool scam, and now that fewer are putting liquidity into the system the entire market is in free fall.

"Ok, lets do that. The S&P 500 is down 23%. The NASDAQ 33%." So far.

"Crypto, meanwhile? Well, bitcoin has fallen 70%. Coins like luna are effectively down 100%. Celsius and voyager digital are bankrupt."
And every time bitcoin has fallen 70%? What has it done? Oh that's right, come straight back up in the next 2 - 3 years. Companies going bankrupt!? Omg it's like companies on the stock markets can't go bankrupt. Lol stupid argument.

"Oh, and the market is chock full of scams, from rug pulls to ponzi schemes to pyramid schemes, and theft from crypto wallets and projects. Theft is up by over 60% this year alone"

Scams are everywhere, even the stock markets. I can bet you more money has been stolen post crypto than crypto has lost in scams. Again, another terrible argument that can be turned against you. Really do some research on your own investments before thinking you know of others lol.


"Oh yeah, and if you put money into broker platforms, well its not yours anymore, because they are not banks and there is 0 regulation."

You know that, if I buy shares, and a company goes belly up, I don't own those shares any more because some administrator gave them to liquidators and now the company is back trading and I'm left holding less shares because they "just took them for liquidation" again, no research on your own ****. Regulation really just means, only the rich can steal, without regulation in crypto means all parties can (sometimes).

"Of course, crypto bros will label all of this as FUD, because anything that threatens The Narrative (tm) must be stopped at all costs. The crypto market is a giant greater fool scam, and now that fewer are putting liquidity into the system the entire market is in free fall."

The entire system is in free fall, have you not been paying attention? Everything is higher in cost and assets are losing value while your savings are being chewed up by inflation.

If anything, it's all the more reason to hold crypto. I can send the bitcoin (not owned by anyone else but me) to a wallet and hold it forever, even if it goes to 0, I'll still own parts of bitcoin. If you hold ur cash in a bank, or own land or gold, and something crazy happens, guess what, the government can come and take it off you by force. Don't believe me? Look up bank runs around the world. Or you no, they don't need to use force when you can't afford anything any more.

 

[ZedRM]

Proof of stake is going to kill bitcoin; there's no point in owning a GPU mining center when nothing else besides Eth makes you any money

You're missing the point, the whole idea of the POS switch is to do away with GPU mining centers altogether. They are an unacceptable burden on the power infrastructures of the world. GPU mining ends this year. And that's a good thing.

Etherium POS will eventually kill-off even the most hard-headed GPU miners, and thus simultaneously thin-out bitcoin mining interest

Yes, that's the idea..

 

[Endymio]

Crypto miners are contributing... to global warming. So there is that.

So are video gamers. Let's ban that too, shall we?

"Reserve has repeatedly hiked interest rates by a total of 2.25%, pushing inflation to its highest level in more than 40 years."

This statement is absolutely wrong.

Yes, I find it inexcusable that editorial staff still hasn't issued an article correction yet.

 

[ZedRM]

So are video gamers. Let's ban that too, shall we?

What a flawed statement. For one, gamers don't run their systems full load 24/7. GPU miners do. For two, even when gamers are playing, their systems are not at full load 100% of the time. For mining, the GPU's are at full load 100% of the time.

So, you were saying?

 

[Endymio]

What a flawed statement. For one, gamers don't run their systems full load 24/7.

What a flawed statement. Carbon emissions don't wait until you're running your system "24x7", now do they? Nor do emissions wait to occur until your CPU load reaches 100%. Miners at least have the excuse that they're supporting an industry. But video games generate nothing but waste .... and carbon:

"...According to a study published in The Computer Games Journal, video gamers in the United States alone produce as much as 24 megatonnes (24 million metric tons) of carbon dioxide per year. This makes U.S. gaming more costly to our environment than the entire activity of countries like Sri Lanka, Estonia, and Lebanon.

You were saying?