Crypto rout worsens: Bitcoin, crypto mcap fall by more than 50% in 3 months

cnbctv18.com:

Following a difficult start to 2022, cryptocurrencies have entered a full meltdown. After the Federal Reserve signalling the end of its quantitative easing policy and amid political turmoil in Kazakhstan, which heavily disrupted cryptocurrency mining operations, prices of top cryptocurrencies are down anywhere between 50 percent and 80 percent over the past three months.The drop came as a rude shock to cryptocurrency investors, many of whom were emboldened after Goldman Sachs’ bold call that Bitcoin would touch $100,000 in 2022.Among key cryptocurrencies, Bitcoin has fallen to $33,500, down more than 50 percent from its November 2021 peak of about $69,000.

The free fall in Bitcoin prices has accompanied high-volume liquidations throughout the crypto market.Also Read:Explained: Why Bitcoin, Ether, and other cryptos crashed FridayOn Friday, 185,480 traders liquidated crypto assets to the tune of $715 million, with $173 million worth of positions on the crypto exchange Binance alone. Ethereum, which touched an all-time high of $4,812 in November has fallen to $2,250."Bitcoin's continued selloff is driving speculators out the market.

However, with leverage quick to build up around this asset, the market could be setting itself up for a short squeeze and relief rally," said Ben Caselin, head of research and strategy at crypto exchange AAX, in a conversation with Cryptonews.com.Overall, the cryptocurrency market call has fallen to $1.5 trillion from about $3 trillion in November, according to CoinMarketCap.Key reasons behind the crypto bloodbathMultiple factors could have a hand to play in the crypto meltdown:1. Imminent Russian blanket ban:While the exact reason is difficult to ascertain, a key cause is believed to be the