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The value of Bitcoin has plummeted by more than 50 per cent since its November 2021 peak.
The price of Bitcoin fell below $30,000 (AU$43,000) for the first time since July 2021, with an 11 per cent dip over 24 hours yesterday (May 9) and a 20 per cent drop in the last week.
It signals a 55 per cent drop in price since the leading crypto coin’s all-time high of around $69,000 (AU$99,000) in November.
It will no doubt be devastating news for cryptocurrency holders of all shapes and sizes as the significant dip in Bitcoin’s price led to a crash in the entire market.
I genuinely don't care if #Bitcoin goes to 20K from here. I am buying more now and will continue to do so if it drops because I believe that it will eventually go to 100K and WAY beyond.— The Wolf Of All Streets (@scottmelker) May 9, 2022
The entirety of the cryptocurrency market dropped by 13 per cent compared to the previous day, with other top 10 coins suffering significant double-digit percentage drops.
Cardano dropped by 20 per cent, Solana by 16 per cent, Ripple by 13 per cent, BNB by 16 per cent, and Ethereum by 10 per cent.
It’s a warzone out there. Make sure to tell your crypto-owning friends to avoid looking at their wallets for a bit.
The fall of the cryptocurrency market follows a similar scene in stock markets around the world, which have also tumbled in recent days.
London’s FTSE 100 dropped by more than 2 per cent, while in the United States, the Dow fell nearly 2 per cent, the S&P 500 by 3.2 per cent, and Nasdaq by 4.3 per cent.
With the cryptocurrency market following wider trends, it essentially confirms that professional investors have become more active in trading the digital asset, which was once only utilised by personal investors or enthusiasts.
According to Glassnode, 40 per cent of all Bitcoin holders are also currently in the red of their investment.
The report also indicates that the recent drop in the coin’s price has signalled a high degree of urgency involved with holders selling off their crypto asset.
This week saw a burst of 42,800 transactions in the Bitcoin mempool, which is the highest transaction activity since mid-October 2021 when Glassnode started tracking transaction activity.
Many also paid the extra fees to instantly sell off their Bitcoin, with transaction fees reaching 3.07 BTC, which is higher than the December 4 sell-off when the market dropped by 34.5 per cent in one day.
The news is in line with the ongoing 2022 trend of digital assets losing their value.
According to the Wall Street Journal, NFT sales have dropped by 92 per cent since September last year when the daily trading average was about 225,000 transactions.
There are now about 19,000 NFT trades a day.