Cryptocurrency or crypto has been the fad in the global financial market for a while now. Since the inception of Bitcoin back in 2009, this digital currency has set a steady foot in the marketplace.
Today, you will meet a lot of people who are actually involved in its mining. While virtual currency has a lot of benefits, one of the most distressing drawbacks is its volatility. Many people hesitate from investing in it because of this sole reason. And recently, the said pitfall was amplified the most - since the July of 2022, the crypto market witnessed a loss of close to $300b.
BTC, short for Bitcoin has been the primary digital asset for years after its advent. Though there are others, it takes the front row and that is why when BTC plunged dramatically, so did the overall digital financial markets - it continues to do so. The majority of the altcoins are facing similar price drops from Ripple, Shiba Inu, Cardano, and others. While some may be worse, a few are gainers, just like NEAR Protocol.
Understanding just how fluctuating Bitcoin is, the sudden backflip from its $40,000 value four days ago makes sense. After the recent FOMC meeting, the price of BTC went up to $40,000. Within a matter of a few hours, the scenario was entirely at odds.
At first, it hit a multi-week lowest standing at $36,000. Imagine a currency losing $4,000 value in just a matter of a few hours! But the decline did not stop there.
According to some reports, the value later dropped below $35,000. If we take into account the current year's spiral, this was the lowest since January.