Will Bitcoin and Ethereum prices stagnate, fall or rebound in 2023? • TechCrunch

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Thanks to a months-long jolt, the crypto market has seen one of the most drastic declines in its history in 2022. But questions arise as to when (if?) the major cryptocurrencies will recover.

The global crypto market capitalization, which represents the total value of all crypto assets (including stablecoins and tokens), fell by around 64%, from $2.2 trillion to around $797 billion. year-to-date, according to data from CoinMarketCap. The two largest cryptocurrencies by market cap, bitcoin and ether, fell 64% and 67%, respectively, over the same period.

With a loss of more than half of their value, one could argue that these cryptocurrencies cannot recover. But when you zoom out and look at the bigger picture, things aren’t so bad for bitcoin and ether, despite what’s happened this year.

Let’s take a look at how significant crypto and global events this year have affected the two biggest cryptocurrencies.

Image credits: Coinbase (opens in a new window)

Image credits: Coinbase, (opens in a new window) Etherscan (opens in a new window)

When the Terra/LUNA ecosystem collapsed in early May, in about six weeks, over $1 billion of the total crypto market capitalization was wiped out, dropping from around $1.8 trillion to around $820 billion, according to the data. In comparison to the biggest cryptocurrencies, bitcoin and ether both fell by more than 50% during this period.

Focusing on this event alone, the decline seems (and, fair enough, was) steep.

Yet since that steep drop, bitcoin and ether have held together in the same range, even after FTX, one of the biggest crypto exchanges, collapsed last month and filed for Chapter 11 bankruptcy. .

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