On Thursday, February 17, 2022, an advertising for Bitcoin cryptocurrency is placed on a street in Hong Kong. Even by crypto standards, this has been a crazy week. Bitcoin dropped, stablecoins sank, and one of the crypto industry’s most well-known firms had its market value plummet by a third.
Bitcoin dropped, stablecoins sank, and one of the crypto industry’s most well-known firms had its market value plummet by a third.
According to CoinDesk, the price of bitcoin fell to roughly $25,420 this week, its lowest level since December 2020. It remained stable at $30,000 on Friday, but that’s still less than half of what bitcoin was worth in November.
Some bitcoin supporters believe the digital currency can safeguard investors from inflation and function as a hedge against stock market declines. It hasn’t done either recently. Consumer inflation jumped 8.3% in April compared to the same month a year ago, the highest amount since the early 1980s. Investors are fleeing riskier assets, such as equities and cryptocurrency, as the Federal Reserve raises interest rates aggressively to combat inflation. This year, the S&P 500 has lost more than 15% of its value. Bitcoin has lost around 37% of its value this year.
