The price of bitcoin seemingly turned a corner in trading today after the cryptocurrency hit its lowest level since July.
The downward slide of bitcoin and other cryptocurrencies dates back to November when bitcoin hit a record high and has continued into the new year. Bitcoin dropped below $50,000 on Dec. 4 before falling below $40,000 on Jan. 21. The slide saw bitcoin drop to $33,000 early this morning before heading upward again.
The two-month slump in cryptocurrencies prices has been blamed on various causes with one common theme being pushed by some outlets is that it’s because cryptocurrency is allegedly a Ponzi scheme. Althought there are some dubious altcoins on the market, that’s a view not shared by others as the leading coins and tokens in 2022 are finding real-world use through decentralized finance and other areas.
One factor that may have played a role is continued crackdowns on cryptocurrency, in particular Russia. Its central bank slapped a ban on the use and mining of cryptocurrencies on Jan. 21, which is when bitcoin dropped below $40,000.
A large consideration, one seemingly ignored by some, is that cryptocurrency markets have followed the broader market. CNBC noted that cryptocurrencies have been moving in tandem with stocks, which have continued to fall since the beginning of the year and just came off of their worst week since March 2020. The same report added that investors have been selling risky assets such as technology stocks as they…
