Bitcoin plunges to $29,000 as the crash left 40% of crypto investors underwater. Going to zero?
Going ‘To Zero,’ that was the headline from Forbes Magazine early this morning. As the bubble finally popped? Just last month, the world’s most popular cryptocurrency was trading above $41,000. In just three weeks, Bitcoin has lost more than half its value from its all-time high of $69,000.
Now for the first time since 2021, Bitcoin has plunged below $30,000 as macro events including surging inflation, tighter monetary policy, and Russia’s invasion of Ukraine, caused investors to shun risky assets. The price of bitcoin fell about 7% to $29,196.10, according to Coin Metrics. Bitcoin has since climbed back up to $29,711 as of the time of writing.
Bitcoin is not alone. The carnage also spreads to Ether, which also was down 8% to $2,160.46. The panic sell is now sweeping across the entire crypto markets as Bitcoin, Ethereum, BNB, XRP, Cardano, Solana, Terra’s Luna, and Avalanche lost their values.
Meanwhile, 40% of bitcoin investors are now underwater on their investments, according to a report from CNBC, citing new data from crypto research firm Glassnode. The number is even higher when you separate the short-term holders who got skin in the game during the last six months when the price of bitcoin reached an all-time high of around $69,000. Meanwhile, Bitcoin is off nearly 55% from its November peak as the rate hikes drive the crypto markets even lower.