Khaberni - Cryptocurrencies lost about half a trillion dollars of their market value in less than a week with escalating sales, especially Bitcoin.
Bloomberg reported that the total market value of cryptocurrencies has decreased by $467.7 billion since January 29, according to data from "Coin Gecko," a website specialized in tracking the performance of cryptocurrencies in the markets.
Bloomberg added that the value of Bitcoin dropped on Tuesday to its lowest level since the victory of U.S. President Donald Trump in the November 2024 elections, who promised that the United States would be the capital of cryptocurrencies, adopting policies supportive of these currencies.
The same agency mentioned that the price of Bitcoin fell to $72,877 per coin, which is its lowest value in about 15 months, then it rose to about $75,900 on Wednesday morning in New York.
Bitcoin's price dropped by about 40% since reaching a record level last October, due to a wide range of liquidations, as many investors sold their cryptocurrencies, which reflected on their market value.
No Longer "Digital Gold"
A wave of cryptocurrency sell-offs began on October 10, leading to these currencies losing about $19 billion of their value, followed by ongoing market liquidations to this day, resulting in broader losses in the value of cryptocurrencies.
Bloomberg noted that cryptocurrencies did not achieve the rise that precious metals such as gold and silver did with the escalation of geopolitical tensions that pushed investors to seek safe havens.
Therefore, the expectations of some investors that cryptocurrencies would become "digital gold" – a safe haven similar to gold but in digital form – did not materialize. This market "failed to establish itself as a hedging tool like precious metals," according to American investor Michael Perry, who added to Bloomberg that it "exposed itself as an asset entirely based on speculation."
Fears of Continued Decline
In the same context, Forbes mentioned today, Wednesday, the rising fears of a continued decline in Bitcoin's price to $50,000 per coin.
Forbes quoted Perry, who had previously predicted the financial crisis in 2008, saying, "There is no logical reason to slow down or stop the decline in Bitcoin's price."
He added that if Bitcoin's price drops to $50,000, mining companies, which issue new coins and secure current transactions in the markets, "may face bankruptcy."
LAM X Group CEO David Mercer, whose services include cryptocurrencies, told Forbes, "Investors rushed to buy gold in record amounts last week, while cryptocurrencies were traded as a risky asset, instead of being a safe haven as many expected."
