This Monday the different markets in the stock exchange and crypto assets had cuts, Bitcoin was one of the currencies that had the greatest affectations, at some point it fell to below 23 thousand dollars, a value that had not had since the end of the year 2020.
This represented up to a loss of 13% of its value, on a day in which other globally recognized markets had declines, the Nasdaq stock market lost up to 3%,” the S&P index up to 2% and if we talk about more cryptocurrencies, Ethereum also went down in value, by Monday afternoon it was worth up to one thousand 230 dollars, which meant a loss of 15%.
Although cryptocurrencies have a decentralized mechanism that operates outside the traditional economic system are not completely disconnected from the stock market, the fact that there are high inflation rates worldwide, in addition to international conflicts are some factors that have generated constant falls in digital currencies and particularly in bitcoin.
However, cryptocurrencies are considered to be of high stock market variation. For example, in the case of Bitcoin, it reached its highest level in November 2021, when it was worth up to $67,000, which means that with the losses it has faced over the past few months it has reduced its value by two-thirds. However, it is also possible that in the coming months it will recover again.
Currently there is no certainty about the future of cryptocurrencies, some specialists say that the market can recover and even grow much more, others predict that “the bubble will burst” citing the fact that the different cryptocurrencies could go to very low levels.
At the end of this Monday, both indices and cryptocurrencies closed with a downward trend, so this behavior is called “bear market”. This has to do with the fact that “bear” means bear and bears hibernate, which means that in case there are downward trends, the market is in the process of retreating.