Bitcoin lost more than 60% of its value in 2022

[ad_1]

It has been a brutal year for the cryptocurrency market.

In the latest blow to the crypto space, Core Scientific, one of the largest publicly traded crypto mining companies in the United States, which mainly manufactures bitcoin, filed for bankruptcy on December 21, citing falling crypto prices and rising energy costs.

And the implosion of FTX, a now bankrupt crypto trading platform that was once valued at $32 billion, has shattered investor confidence as the ripple effects of the company’s collapse continue. to spread in the crypto industry.

“Many Americans realize that cryptocurrency is just a speculative craze and the industry is full of scammers,” James Royal, senior reporter at Bankrate, told CNBC Make It.

At this point, about 60% of Americans now think investing in digital currency is very risky, up from 45% in 2021, according to the recent CNBC Make It: Your Money survey, conducted in partnership with Momentive. Another 26% think it’s moderately risky.

Only 8% of Americans have a positive view of cryptocurrency in November 2022, according to the CNBC All-America Economics Survey.

Overall, the crypto market lost just over $2 trillion in 2022 and popular digital coins such as bitcoin fell well below their 2021 highs.

Here’s how much the value of seven popular cryptocurrencies has changed in 2022 as of December 22, according to CNBC calculations.

Terra: -100%Solana: -93%AMP: -93%Cardano: -80%Ether: -67%Bitcoin: -63%Dogecoin: -55%

Prices are likely to drop further when “traders and crypto companies start to see that they don’t have a relentless stream of brands ready to support crypto prices,” Royal says.

In fact, Royal warns against investing in crypto.

Crypto is considered a highly volatile asset that is subject to unpredictable price fluctuations and drops. For this reason, financial experts generally advise against investing more in crypto than you are willing to potentially lose.

Sign up now: Be smarter about your money and your career with our weekly newsletter

Don’t Miss: Mark Cuban Still Believes in Crypto Despite FTX’s Collapse, Here’s Why

[ad_2]