The worst month for Bitcoin’s value since it started trading on exchanges in 2010 was June 2022, when it dropped by 38%.
Ethereum, the second-largest cryptocurrency in the world by market capitalization, ended June down 45%.
The crypto market lost $2 trillion within a few months. However, this is a regular occurrence in the market; the market is used to seeing tremendous price volatility. Over the last ten years, the price of Bitcoin has experienced two prolonged bear markets. Bitcoin dropped more than 80% of its value during the previous cryptocurrency winter in 2018, but it later recovered and reached an all-time high of over $69,000 in November 2021.
Many people have been alarmed by this sharp reduction. According to Bank of America, the number of US crypto users decreased by more than 50%, from 1 million in November 2021 to less than 500K in May.
However, some see this as a chance to stockpile Bitcoin in honor of its recent, victorious surge. MicroStrategy’s Michael Saylor revealed that the business has added 480 BTC for around $10 million, bringing its total Bitcoin holdings to about $4 billion. President Nayib of El Salvador, a strong supporter of the top cryptocurrency, tweeted that 80 additional bitcoins worth a total of $1.52 million had been added to the nation’s bitcoin holdings.
Bitcoin was ahead of other cryptocurrencies (in terms of unique users) until March 2020 (when Ethereum overtook it). This growth can be linked to DeFi’s growth since the growth of the DeFi industry resulted in the creation of services that accept Ethereum and other Ethereum-based tokens.
Bitcoin used to be in charge of most transactions, but now several coins that support smart contracts, like Ethereum, are in charge.
BTC has contributed just over 10% of the volume of all cryptocurrency transactions so far in 2022. Stablecoins account for a large portion of that, but Web3 and DeFi cryptocurrencies now account for 45%.
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