The crypto space is facing shockwaves starting from the beginning of 2022. Various external factors filled the crypto market downturn, which also involved several cases in the crypto space. This led to a monstrous drop in the global market capitalization below $1 trillion, which reached nearly $3 trillion shortly before the annual close in 2021.
Currently, with the market cap somewhere around half, another relative dive is trying to happen sooner rather than later.
According to the pioneer behind Soundwise, a computerized sound stage, the global market capitalization of crypto is the majority of its foundation. The organizer alluded to the current state of the crypto space as that of the DotCom bubble of 2000-2002. Then, at that point, financial backers placed huge bets on emerging web-based organizations, ignoring the boundaries of the venture. Very soon the air pocket burst, pulling the financial exchange somewhere close to over 80%.
Therefore, the trailblazer assumes that the ongoing circumstance is very similar to that of the DotCom bubble, and thus the market capitalization may slide somewhere close to another half to make noise around town below $500 billion very soon.
This could be the impact on the price of Bitcoin (BTC).
The price of Bitcoin has recently gone through a huge downtrend, including a drop of over 40% in the long run since June itself. The star cryptocurrency has crashed almost 70% from its highs, while another 30% drop is normal in the coming months. Also, according to a well-known expert, the cost of BTC may trace its bottom sometime in November, around $14,000.
Researcher predicts BTC lows in view of FED store prices. He assumes that the FED’s choice has consistently affected the crypto space. Currently, BTC costs are snubbed just above the significant support levels of $20,000. Assuming these levels are breached, the encounter could turn out to be relentless until the lower targets are met.
Overall, the negative fog is expected to hover over the crypto space until the end of 2022. Subsequently, the cost of Bitcoin (BTC) and popular altcoins may be severely affected, which may thus drag the global crypto market cap below $500 billion soon .
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