Crypto prices have declined for months. At one point this week, bitcoin was 50% below its all-time high in November. So why is this happening?
It’s likely a combo of reasons:
- We may be entering “crypto winter,” which wouldn’t be unheard of. The last one took place in 2018 when bitcoin plunged 80%.
- Institutions: As large investors have taken crypto positions, prices are increasingly impacted by traditional markets (which are also down).
- The Fed and regulators: Traders fear the potential for interest rate hikes and crypto regulations is high.
Side note: There are now 81.4k crypto wallets containing $1m+ in bitcoin, and 7.1k containing $10m+.