Crypto Pirates

Investors are taking a risk-off attitude ahead of the Federal Reserve's meeting on Tuesday and Wednesday, cutting their stakes in cryptocurrency and blockchain-related stocks. Bitcoin's price plunged over the weekend, falling to half of its all-time low.

Cryptocurrency stocks continue to fall ahead of the Fed meeting.

Over the weekend, the cryptocurrency market saw a significant price collapse. Bitcoin and the top 30 cryptocurrencies began to suffer losses.

Bitcoin's price has fallen to half of its November peak. Cryptocurrency stock prices fell as investors retreated in a risk-off mode ahead of the forthcoming Federal Reserve meeting.

Proponents believe that the Fed's meeting on Tuesday and Wednesday prompted a decline in positions in cryptocurrency equities such as MicroStrategy, Riot Blockchain Inc, and Marathon Digital holdings.

Over $200 billion in market value was wiped out during a huge carnage in the bitcoin industry. This resulted in a huge decline in bitcoin stock values.

Shares of several of the largest cryptocurrency institutions, such as MicroStrategy (MSTR) and Grayscale Bitcoin Trust (GBTC), fell by 8% and 13%, respectively. The stock price of Tesla, the electric car firm that just announced that it would accept Dogecoin as payment for its merchandise, resisted the decline.

According to CoinGecko data, cryptocurrencies in the top 30 by market capitalisation had a double-digit price loss. Prices for Solana, Cardano, and Terra have fallen by more than 15%. Bitcoin's price has fallen to half of its all-time high.

Proponents believe that the conclusion of the Fed meeting will have an impact on the prices of cryptocurrency equities and the crypto market capitalisation.

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In just four days, Bitcoin's price fell by $10,000, and Ethereum's price fell by $1,000. According to specialists, the savage cryptocurrency selloff may not be over yet.

This chaotic withdrawal from the crypto realm coincided with a big drop in equities, which is on track to be the worst month for US stocks since March 2020.

As the new week begins, investors are bracing for an aggressive Federal Reserve monetary policy decision on Wednesday, as well as rapidly growing Russia-Ukraine geopolitical tensions.

"Markets have resumed where they left off on Friday, in full risk-off mode." As we have previously stated, risk-off impulses are being driven by a number of variables, which may combine to form a perfect storm ahead of the FOMC meeting this week," said Win Thin, global head of currency strategy at BBH. "In addition to the Fed's predicted hawkish stance, markets are now dealing with escalating tensions between Ukraine and Russia, as well as dramatically lower PMI numbers."

This risk-off mood has had a significant impact on the cryptocurrency market, which has seen $130 billion wiped out in the last 24 hours. Both Bitcoin and Ethereum have dropped more than 50% after reaching fresh all-time highs in November.

Bitcoin was trading at $34,333.25 as of the time of press, down 2.9 percent on the day. And Ethereum was trading at $2,241.30, down 8.2% on the day.

The likelihood of considerably tighter monetary policy weighs strongly on risk-on assets such as cryptocurrency.

"The March liftoff is fully factored in, as are three additional raises in 2022." Thin added that two additional raises are presently expected in 2023, resulting in a terminal Fed Funds rate of 1.75 percent. "We continue to believe that this is far too low and that it should be raised to at least 2.0-2.25 percent." If inflation remains stubborn, the Fed may be forced to raise the Fed Funds rate to 2.5-3.0%."

According to Exinity chief market strategist Hussein Sayed, the enormous selloff is demonstrating to investors that bitcoin might not be a good inflation hedge. "Cryptocurrencies did not safeguard portfolios as a hedge against market volatility or increased inflation." "Most digital assets have lost a quarter to a third of their value this year, with Bitcoin, the most renowned digital currency, reaching a six-month low of $34,625," Sayed said.

In addition, escalating geopolitical tensions between Russia and Ukraine add uncertainty to an already cautious market. The US issued an order for diplomats' families in Kyiv to leave Ukraine over the weekend, citing the "continuing threat of Russian military intervention."

Meanwhile, the British government has claimed that Russia is attempting to impose a pro-Kremlin government in Ukraine. NATO also declared on Monday that it will be sending extra ships and fighter jets to Eastern Europe.

What comes after that?

Analysts are warning that if the stock market selloff does not end soon, the decline in cryptocurrency could worsen. According to UTXO Management senior analyst Dylan LeClair, there is still room for further decline.

"Will there be more bad news? "Perhaps, especially if equities continue to fall and credit markets become infected with contagion," LeClair speculated. "The question is, when does macrofunds' marginal selling become marginal buying?" The reality is that there are hundreds of trillions of dollars in bonds with negative real yields - contracts that are guaranteed to lose money. When the Fed reverses its tightening policy, not if, $BTC will soar."

However, the long-term view for bitcoin remains positive, and best-selling author of "Rich Dad Poor Dad," Robert Kiyosaki, stated that he will purchase more of the world's largest cryptocurrency once it reaches $20,000.

"You make money when you buy rather than when you sell." Bitcoin's value has plummeted. That's fantastic. BC cost me $6,500 and $9,500 to purchase. If BC tests $20k, I'll purchase more. "It's going to be time to grow richer," Kiyosaki stated over the weekend.

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Localcoin co-founders Tristan Fong and Jay Pandher observed restrictions that kept newer and smaller size investors out of the picture when cryptocurrency exchanges first debuted on the investment landscape. Their approach made use of a tried-and-true technology that everyone is familiar with: the ATM. They opened their first Localcoin ATM in Markham, Ontario, in 2017.

Localcoin ATMs definitely struck a chord with investors looking for a quick and easy method to dip their toes into the bitcoin waters. The company swiftly developed to become Canada's largest bitcoin ATM network. There are already over 800 Localcoin ATMs installed in convenience stores, retail, petrol stations, and hotels across Canada and the United States, with 15 to 20 new machines added each week.

"We are Canada's largest network, with a solid reputation and ties with well-known retail brands," Fong explains. "In addition to having the most successful network, we also offer the most competitive rates and offer a high level of customer service, including live chat and phone, seven days a week."

The objective of Localcoin is to make crypto investing more accessible to the common person by offering a secure gateway they can rely on.

"By situating our ATMs in familiar surroundings for a normal customer, we recognised an opportunity to make shopping an exceptionally straightforward experience for the user," Fong explains. "Cryptocurrency purchases can be made instantaneously with ATMs." ATMs are substantially easier and more convenient than traditional exchanges, which require account opening and a technical learning curve."

According to Pandher, online exchanges necessitate a significant amount of onboarding and coordination. "It takes time to get approvals and set up accounts, and it can take one to five business days to transfer payments," he explains.

Purchasing bitcoin through a Localcoin ATM, on the other hand, can be as quick as a cash withdrawal. Users can simply go up to the machine after installing a crypto wallet app, scan their crypto wallet QR code (usually on their mobile phone), and purchase the cryptocurrency of their choice within a minute. Investors can buy Bitcoin, Ethereum, Litecoin, and Dogecoin depending on their location, with more to follow.

"Localcoin ATMs are especially useful when dealing with smaller dollar quantities and more frequent purchases," Pandher notes. "For example, if the price is low today, you may go to an ATM and buy cryptocurrencies right away without having to wait one or two days for the settlement to be executed."

According to Charlene Cieslik, chief compliance officer for Localcoin, the inherent security of ATMs also helps decrease the anxiety factor for first-time and inexperienced investors. "An additional advantage of the ATM approach is that the investor controls the crypto wallet," she notes. "With exchanges, your wallet is neither in your possession nor under your control." You rely heavily on back-office payment processing – usually just humans manually going through pages of payments. You have complete control over your wallet and money using Localcoin. There is no third party who has access to your private information or key. And, because you're buying with cash or selling for cash, you won't have to wait in someone else's manual queue for wire or e-transfer processing."

She emphasises that devices on the network are regularly monitored to verify that compliance and security standards are met and that users are not exceeding permissible limits. "We have put a lot of expert oversight in place to ensure that transactions are secure and that they are monitored to meet regulatory compliance standards."

Localcoin ATM is constantly extending its offerings as adoption develops. The company intends to open 2,000 more stores in Canada and the United States by the end of 2022, and it is investigating other services, such as cryptocurrency selling functionalities at certain locations. Localcoin ATM is also expanding its trading desk (for larger transactions), improving the crypto wallet features (more buy and sell options), and exploring new products and payment solutions based on market demand.

According to Fong, the future looks promising in the next months.

"We are the leading Crypto ATM operator in Canada and will continue to consolidate our position as the market leader here, while also putting equal effort into our US development." We are delivering on our aim to make purchasing and selling cryptocurrencies as simple as possible for individuals who are new to this sort of investing."

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Vladimir Gutenev suggests a gold-backed Russian stablecoin in instead of an outright crypto ban. As a result, the Russian government may allow cryptocurrency mining and stablecoins. Legalising stablecoins and mining, according to the legislator, would be extremely beneficial to Russia. Legalisation proposals could overturn the proposed blanket crypto ban.

The Russian government may authorise cryptocurrency mining and stablecoins.

Russia's top senator has recommended legalising Bitcoin mining and stablecoins. The government would have control over and support for these stablecoins in the form of gold.

Gutenev's proposal is consistent with the country's current crypto ban. The proposed crypto blanket ban by the Bank of Russia is modelled after a similar initiative in China. The Bank regulates cryptocurrency purchases, trading, and mining. It's unclear whether lawmakers will agree to this plan.

However, rather than outright prohibiting cryptocurrencies, the government appears to be more interested in devising a framework to control them. The country's recent proposals may suggest that it is prepared for a future in which cryptocurrencies are more generally accepted.

The government, according to the story, will take action against cryptocurrency. However, under official supervision, Russia may allow gold-backed, stable-value cryptocurrencies and cryptocurrency mining. Vladimir Gutenev, chairman of the State Duma Committee on Industry and Trade, believes that legalising would be beneficial to the country.

Cryptocurrency prohibition, according to Gutenev, is "a good thing for the economy." However, he believes that a government-issued gold-based stablecoin would be advantageous to the country.

Furthermore, such a financial service would be appealing to both private entities or individuals and corporate businesses. It can also be used for financial planning.

The lawmaker hypothesised during the debut that the stablecoin will behave similarly to a gold rouble. Russia may use it to avoid economic sanctions and its "limitation" foreign policy, which seeks to limit engagement with Western countries. The coin can also assist other countries in developing strong and transparent trade ties.

On Thursday, the Central Bank of Russia issued a lengthy paper outlining its position on virtual currencies. It also advocated for the suspension of crypto services.

According to a recorded report by Cryptopolitan, government authorities accused cryptocurrency of being extremely volatile and contributing to illegal activity in the country.

According to the analysis, cryptocurrencies pose a threat to Russia's national economy. According to Elizaveta Danilova, the country's restrictions on cryptocurrency mining, trading, and usage in general would culminate in a comprehensive prohibition. Cryptocurrency storage, on the other hand, would be lawful.

Furthermore, the paper urged that the government impose penalties on anyone who utilises cryptocurrency to exchange goods or services. The Bank has already launched an attack on the cryptocurrency business. The Bank previously prohibited mutual funds from investing in cryptocurrency.

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We don't want a true crash, but we deserve it. Although it may appear counterintuitive, I believe we require a crypto winter similar to others that have preceded it.

At this stage in a Bitcoin BTC cycle, we begin to see all of the doom and gloom articles and postings about cryptocurrency being a Ponzi scheme. Countries are beginning to proclaim that they will prohibit the use of cryptocurrency. Last year, it was China; this year, it is Russia.

We've read articles about how NFTs are wreaking havoc on the environment. They include soundbites like "a French artist was surprised to hear that their "publication of six crypto-artworks consumed more electricity in 10 seconds than their entire studio over the last two years." These are quite foreboding, yet selective journalism completely misses the mark. We frequently encounter journalists and critics who have just enough technological competence to be dangerous in most media. They will see proof-of-work and proof-of-stake blockchains as interchangeable, or will recognise that some blockchains are proof of stake as a token gesture.

Mainstream articles on blockchain technology or projects built on it are rarely written by people who genuinely understand it. Getting more clicks and, as a result, more advertising money may be a case of going to extremes. There is still a lack of knowledge and comprehension.

Many of the articles written about blockchain now remind me of pieces from before 2000 that frequently appeared on Reddit's Popular tab. Headlines that blasted the internet's endurance or PC power consumption are now amusing to read. "It should come as no surprise to us that people are failing to comprehend the point of the Internet," Jake Wakefield remarked in a Zdnet.com piece in 1999. Do you recognise this? How many times have we heard that NFTs are "simply JPGs that I can save or save to my phone"? Articles discussing the demise of blockchain and, in particular, NFTs will age similarly.

The fact is that blockchain is a difficult technology to grasp. It took me a long time to fully grasp it. I kept forgetting how that pertains to anything other than bitcoin, no matter how many times I read a definition. I recall the first time I read about traditional businesses using blockchain into their technology stacks. It was an article on how Santander investigated the use of blockchain technology in certain aspects of their infrastructure. I couldn't figure out how crypto and IT systems were related... and this from someone with a strong technical and information technology background.

The world will never completely embrace disruptive and revolutionary technologies when they first exist. The majority of people are not actively seeking to comprehend new concepts and ideas. People will only listen for as long as they need to validate their conclusion before beginning to read or listen. We live in a world characterised by widespread illiteracy, impatience, and obstinacy. So, while the internet may have triumphed, that does not necessarily imply that we have. Part of this could be attributed to the severe monopolisation of the media we consume. Few stakeholders stand between us and what we consume, thanks to Facebook and the main networks. We can change this with blockchain.

Blockchain represents a ray of hope for a better world for me. At the moment, a lot of attention is being paid to how crypto may make you rich quickly and easily. Notably, this relates to how many people are desperate to change their circumstances. After the last two years, much of the world is in desperate need of a break, and cryptocurrency appears to be that winning lottery ticket for many. Sadly, this is not the case. Not everyone can win the lottery, and even if they could, the payouts would be insignificant. Many people believe that blockchain, crypto, or meme-coins will instantly improve the lives of individuals who are struggling. It is, however, the start of a decentralised society in which truth, honesty, integrity, and growth can flourish.

Blockchain technology enables the construction of systems that are transparent and verifiable. While many of the most important crypto projects are currently centralised, this is not the case for all of them. It does not, however, imply that all future successful initiatives will be. Ethereum ETH, for example, is already on the path to complete decentralisation. The paper exposes the most serious issue in the decentralisation discussion, which is frequently overlooked. Amazon AWS servers host more than a quarter of Ethereum nodes. For the case for decentralisation, Amazon AWS is the most significant bottleneck, followed by Cloudflare. We should push bare metal techniques to development in the same way that we support decentralisation in blockchain technology. We can't rely on Amazon fully.

Decentralisation opens up a whole new universe of possibilities for technology, the internet, and connectivity. Because of the significance of this upcoming wave of invention, Meta (formerly Facebook) is already trying to gain control of the Metaverse. They realise they can no longer be the technological epicentre. It is simply need to read their website to realise this. Language like "a future created by all of us" and "the metaverse will be a collective endeavour that extends beyond a single firm" are used. They are well aware that decentralisation and blockchain will take over the world, so why are we still debating the purpose of an NFT? The truth is that it marks the beginning of a new era free of the privacy concerns that plagued the first decade of the twenty-first century.

Meta's purpose, I assume, is to establish itself as a hub of connectedness using SSO with Facebook Login. To log into Oculus, you must already have a Facebook account (which will be a Meta account as soon as brand awareness hits its target number). Meta is putting together the resources necessary to acquire Gen Z and Y users through the back door. A 12-year-old cannot have a Facebook account, but they can have an Oculus account. Do we really trust that Meta will not begin tracking their data after they reach the age of 13?

The evolution of Bitcoin can be summed up as follows: Satoshi Nakamoto reveals the Bitcoin whitepaper in 2009. 2011 — Bitcoin forks result in the birth of new cryptocurrency initiatives. Ethereum is released in 2015, as blockchain startups start to develop. 2018 – The total cryptocurrency market cap reaches $820 billion, with Bitcoin's dominance decreasing to 33% from 85% in 2017. 2021 – Bitcoin reaches $67,566 as the whole crypto market worth exceeds $2.9 trillion. Coinmarketcap presently monitors over 17,000 cryptocurrency projects and 450 exchanges.

From here, we can either see the crypto industry collapse and NFT initiatives become completely useless, or we can watch the future begin to take shape. Web 3.0 is still in its early stages, but there are RPC tooling businesses, NFT builders, smart contract generators, and a plethora of other one-of-a-kind and remarkable initiatives that are just getting started. The Ponzi scheme peaked in 2017, and the euphoria peaked in 2021. The base is the tedious part that precedes the real revolution. Developers require suitable tooling to standardise code and development procedures. Instead of focusing on marketing hype or a token's "meme status," we must concentrate on the technology. Crypto appears to have mimicked the game industry's 'pseudo-agile' development model, failing to learn from its shortcomings. Without proper communication, projects are frequently delayed and unrealistic deadlines are met. The 'Crypto-Bro' development mentality, like the advertising-only mentality of dot-com era internet firms, must fade away.

The internet boom of the 1990s was followed by a crash that separated the strong from the weak. The same thing is about to happen in the crypto world. There are far too many get-rich-quick and Ponzi schemes on the market right now. Since 2017, this has been true... Anyone interested in the OneCoin cryptocurrency? However, it is not the technology that is defective. In fact, I believe it is a very positive indicator for the technology. Everyone wants to be a part of it, but not everyone knows why it is going to alter the world. They see the obvious; they understand how to generate money right now. Some crypto initiatives just fork a successful chain and add new branding to it, similar to how vacuous dot-com businesses spend up to 90 percent of their budgets on advertising. This is not an example of creativity. This is an example of opportunism.

However, this is not the point of cryptocurrency and blockchain. Some of us see how we can transform the world tomorrow by giving everyone a voice. It's a long way off, but blockchain is the only way forwards for me. However, we must first clear the path. There are just too many meaningless enterprises. We are obviously trapped in a bubble. Even now, with Bitcoin hovering around $35,000, the overall market capitalisation is more than quadruple what it was just four years ago. The impending crash will affect only those projects that lack the necessary technological foundations. It will pave the way for the project that will serve as the foundation for Web 3.0. Should we thus sell? I can't give you that advise, but I'm personally selecting projects that I believe will have a place after the reset and dollar-cost averaging them.

If we don't see a purging of pointless undertakings, we may be in for a future that demonstrates Idiocracy was simply a documentary that was released too soon...

I'm not sure how to get to a decentralised world where everyone has equal access to possibilities, but the path is clear; crypto alone offers the necessary foundations.

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Crypto.com's CEO has admitted to a significant security breach and cryptocurrency robbery. Last Monday, hackers obtained access to 483 Crypto.com user accounts and made a series of illicit withdrawals, stealing nearly $30 million in various cryptocurrencies.

According to Crypto.com, hackers overcame a 2FA barrier in a $3 million cryptocurrency heist.

The cybercriminals stole a total of 4,836.26 Ethereum (valued $13 million to $15 million), 443.93 Bitcoin (about $16 million to $19 million), and $66,200 in other currency. Crypto.com CEO Kris Marszalek indicated that all victims of the incident had been compensated, although he did not provide many specifics about how the heist was carried out. This should raise even more concerns about the platform's security, especially because the overall amount stolen exceeds industry analysts' projections.

In terms of what did occur, Marszalek confirmed that the hackers were able to circumvent Crypto.com's two-factor verification mandate, which demands a second form of authentication for anyone executing a withdrawal. Marszalek could not explain how the hackers were able to complete transactions without entering the second factor, but he did state that the company had revoked all existing 2FA tokens as a result of the incident. To restore access to their wallets, account holders will need to create a new 2FA token.

In the immediate aftermath of the loss, Crypto.com froze all withdrawals for 14 hours. In addition, the organisation is implementing a few new security measures in order to avoid another incidence in the future. Most significantly, account holders who alter their withdrawal address must wait 24 hours before making another withdrawal, offering a time for someone to reply if the change was not approved.

In the meanwhile, Crypto.com is launching a Worldwide Account Protection Program (WAPP) to help customers regain trust. On February 1, the WAPP will go live in select markets, allowing qualifying customers to be reimbursed for up to $250,000 in the event of another theft. In the aftermath of the event, eligible users must enable multi-factor authentication for all transactions, create an anti-fishing code, and file a police report. They must also complete a forensic questionnaire and cannot access their account using a jailbroken device.

According to Marszalek, Crypto.com will eventually make MFA (rather than 2FA) the platform's default security standard, however it is unclear when that will happen. Meanwhile, the company has hired third-party security experts to conduct an investigation into its security posture. In recent years, several bitcoin exchanges have integrated biometric onboarding and authentication. Emirex and Impily, for example, have teamed with iDenfy, while Simplex and Bitex have recently partnered with Onfido.

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As the market responds to reports that Russia is pursuing a ban on cryptocurrency trading and mining, key cryptocurrencies have suffered losses of more than 20% in a week.

In less than five days, the value of one Bitcoin fell from $US43,293.80 to $US33,629.50, a 22% reduction, after the Central Bank of Russia recommended a wide ban on cryptocurrencies, which it compared to a pyramid scheme based on energy-intensive crypto mining activities.

The volatility of cryptocurrencies poses risks that are "much higher for emerging markets, including Russia," according to the bank, which recommends that financial institutions be barred from using cryptocurrencies for any transactions and that the exchange of crypto for fiat currencies be prohibited.

Individuals would not be prohibited from having cryptocurrencies, according to sources, which stated that Russians presently trade roughly $7 billion ($5 billion) in digital assets.

Crypto exchanges, on the other hand, would be prohibited from functioning within the country, and the Central Bank of Russia would collaborate with regulators in other countries to monitor Russian individuals' crypto transactions.

Governments are increasingly interested in monitoring bitcoin in order to eliminate the anonymity that has allowed cryptocurrency to become the de facto money of the cybercriminal underground.

Since 2019, the Australian Taxation Office (ATO) has used data matching to track down cryptocurrency transactions.

Whatever its promise to deter criminals, the planned ban sparked criticism from Russian tech titans such as Telegram founder Pavel Durov, who highlighted that "no developed country bans cryptocurrencies" and that "such a prohibition will surely slow down the development of blockchain technology in general."

"These technologies improve the efficiency and safety of many human activities," he continued, noting that Russia is "one of the leaders in terms of the number of highly qualified specialists in the blockchain industry" and warning that a ban "will result in an outflow of IT specialists from the country and the destruction of a number of sectors of the high-tech economy."

"While such a restriction is unlikely to deter unethical players, it will effectively kill legal Russian ventures in this field."

Instability is being addressed

Crypto investors first dismissed the proposed ban as a non-event, claiming that the market will absorb the news without incident – nevertheless, the fast decrease in Bitcoin, an industry bellwether, reveals that the proposed ban has shook many cryptocurrency investors.

Russia has joined a limited handful of countries that have taken steps to restrict or outright ban cryptocurrencies, including Egypt, Iraq, Qatar, Oman, Morocco, Algeria, Tunisia, Bangladesh, and China, which declared crypto trading to be "illegal financial operations" in September.

42 other nations have restricted bank trading in cryptocurrencies, with some doing so for practical reasons: Iran's recent stoppage of crypto mining until 6 March, for example, was linked to the need to limit the risk of blackouts during the country's chilly winter.

Despite the protests, there are signs that miners have proven adept at adapting to change: for example, following China's cryptocurrency prohibition, neighbouring Thailand experienced a surge in crypto mining.

Other countries, including Australia, are expanding official oversight of cryptocurrency transactions and their role in the larger financial system.

Treasurer Josh Frydenberg indicated in December that the government would undertake legal reform relating to cryptocurrencies in 2022, with consultations expected to conclude by mid-year.

The move comes only weeks after the Commonwealth Bank of Australia announced a partnership with cryptocurrency exchange Gemini to allow CBA users to purchase and sell bitcoin assets via its online banking app.

"The development and increasing demand for digital currencies creates both difficulties and opportunities for the financial services sector," said CBA CEO Matt Comyn, emphasising the importance of "capacity, security, and confidence in a crypto trading platform."

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Cryptocurrency enthusiasts are having a difficult time. Following a very strong second half of 2021, we now appear to be in an eternal downward trend as the crypto market crisis continues. Whether it's Bitcoin, Ethereum, or another type of cryptocurrency, currencies are sliding one after the other, with only brief respites occuring on a case-by-case basis. Is this the new normal for the crypto market, or will it continue to rise and fall like it always does?

Cryptocurrencies in general are notoriously volatile. Seasoned cryptocurrency veterans have witnessed both mountain-high highs and shattering lows. The crypto market fluctuates, much like the stock market, but the crashes that occur semi-regularly on the crypto market are a perfect representation of how unpredictable it truly is.

The crash is not confined to a single cryptocurrency. While Bitcoin is the poster child for cryptocurrency, other currencies were hammered just as hard, if not more. That is not to argue that Bitcoin (BTC) has not suffered a severe loss; it has. According to CoinGecko, BTC reached an all-time high of $67,617 at the beginning of November 2021. The price has progressively declined since then, but it genuinely fell in January, reaching slightly about $35,000 on January 23.

According to The Economic Times, the most recent crypto meltdown wiped out more than $1 trillion in market value. That's right: $1,000,000,000,000, a whole twelve zeroes, in US money has just vanished in a few of months. Which currencies have suffered the most losses?

As previously stated, Bitcoin has suffered a significant loss, and we may not have seen the last of it. BTC has dropped more than 45 percent of its value since its high in November. While Bitcoin is in trouble, other currencies are not faring any better.

Ethereum (ETH), the second most popular coin, is also suffering significant losses. In the recent past, Ethereum's value (in terms of USD) has dropped hundreds of dollars on an hourly basis, only to reclaim some ground later — and then plunge again. ETH, like Bitcoin, reached its pinnacle in November 2021, achieving a value of $4,815 per coin (via CoinGecko.) Although the currency never quite reached that level again, it remained around the $4,500 range through the end of November and part of December 2021 - but those days appear to be long gone now. ETH has declined from $3,356 to $2,381 in the recent week (January 17-January 24, 2022).

We recently reported on Dogecoin's massive success, which is now officially acknowledged as a currency on the Tesla retail store, however the euphoria was fleeting. Dogecoin is presently worth the least it has since its surprising spike in April 2021. In other words, the crypto crisis is hitting all currencies, whether they are giant behemoths (BTC and ETH) or lesser coins.

Before we go into what transpired in the cryptocurrency market over the last several weeks and months, it's crucial to understand that this is just what the crypto market does. It rises and falls in waves, and only a larger picture of more than a year reveals which market cycle we are currently in. That's true, the crypto market (while it isn't solely a crypto thing) recognises two market cycles: bull markets and bear markets.

A bull market occurs when investments are generally on the increase. There may be some bumps in the road, but we're seeing an overall upward tendency – that's a bull market. A bear market, on the other hand, describes a period in which securities decrease over an extended length of time.

Many financial analysts think that we have been in the midst of a bull market for quite some time. The bull market dominated the majority of 2021. With the recent slump, some analysts believe the bull market is ended – at least until the next cycle. "I'm afraid the bull market has come to a sudden end," market expert Opeoluwa Dapo-Thomas told NairaMetrics. Key support levels have been breached, wiping out a trillion dollars from the total value of the cryptocurrency market."

The epidemic had an impact on markets all across the world.

Whether or whether the bull market has ended for good, it's difficult to dispute that things are difficult right now. There could be a variety of causes for the 2022 crypto market catastrophe. According to Financial Express, the Omicron version of the new coronavirus is causing anxiety in all markets. Two years into the pandemic, the market's impact remains as strong as ever, playing a role in the most recent crypto meltdown.

The cryptocurrency market is also reacting to the status of the world market, which has been experiencing a negative trend: once again, this is most likely because to the ongoing epidemic. Many governments are currently taking steps to lessen the inflation of the last two years, and the market suffers as they reverse previously enacted emergency measures.

According to USA Today, the Federal Reserve began producing dollars from scratch at a considerably quicker rate in 2020 to save the economy at the start of the epidemic. Governments all throughout the world have done the same thing in numerous cases. There was no way this wasn't going to catch up to the market eventually.

Will cryptocurrency be able to rebound from this downturn?

Many crypto sceptics are ecstatic as the markets hit new lows on a daily basis, but is this trend likely to continue? It's difficult to predict with precision, but historical examples of bull and down cycles suggest that the crypto market will eventually recover. So far, it has always done so, with significant gains each time.

Simply looking at Bitcoin prices on CoinGecko provides a very basic picture of how the cryptocurrency market fluctuates. A year ago, in February 2021, Bitcoin was considerably cheaper than it is now, fluctuating about $32,000. We've seen it grow to $60,000 and above in March and April 2022, only to fall back to $30,000 in June. We all know what happened next: the massive November 2021 increase.

Whether the cryptocurrency market recovers swiftly or slowly, the odds are that things will return to normal sooner or later. Time will tell whether Bitcoin and other cryptocurrencies can repeat their 2021 performance.

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Why comparing the current market fall to the notorious 2018 crash makes no sense.

With Bitcoin's price having fallen by half from its November peak, investor sentiment has become increasingly pessimistic, and the focus has switched away from making ATH predictions and towards arguments over the currency's possibility for recovery.

The present crypto fall is part of the same broader backdrop as the equities market slump, with tech stocks recently dropping to new 14-week lows.

However, while most agree that investor concern was fuelled by the potential of increased interest rates and political tension, with the Ukraine-Russia conflict heating up, can looking at the macros justify the worry of the 2018 bear market repeating itself?

How awful is it?

The danger of 2018 repeating itself has crept back into the bull-bear market argument.

"Macro-induced downturns have more structural similarities to March 2020 than 2018 (which was a crypto slowdown in a risk-on climate)," Zhu Su, co-founder of the crypto hedge fund Three Arrows Capital (3AC), said on Twitter.

To bolster his case, Su "reminded" of three rate hikes in 2017–the year that saw the largest crypto rally in history.

The year 2018 will be remembered with dread, as the price of Bitcoin plunged about 65 percent from January 6 to February 6.

By September of that year, the MVIS CryptoCompare Digital Assets 10 Index had lost 80% of its value, making the cryptocurrency market meltdown worse in percentage terms than the Dot-com bubble's 78 percent collapse in 2002.

What happens next?

Following the 2018 fall, it took over three years for the price of Bitcoin to return to the all-time high hit in late 2017.

However, the crypto market has grown into an entirely different beast–in both scale and complexity.

Just looking at industries like DeFi and NFTs demonstrates how the current market is unrelated to 2018 conditions.

Jim Cramer, who runs the CNBC Investing Club, claimed he expected "a surge of money moving from crypto into equities," as he pointed to his list of recommendations–only to be reminded by Su that regular investors are already given a better incentive.

"There is zero possibility Millenials will buy Brazilian commodity extractors, Russian banks, or Chinese life insurance companies," Su stated, adding that "no one is going to buy value stocks or utilities when these currently yield considerably higher in DeFi."

Meanwhile, the plethora of institutions that have entered the field in recent years will undoubtedly play a part in the market response.

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