Bitcoin fell below $ 20,000 for the first time since November 2020

The unrest peaked in April last year when Coinbase, the cryptocurrency exchange, went public with an estimated $ 85 billion. coming-out party for the industry. Bitcoin topped $ 60,000 for the first time.

Last summer, El Salvador announced it would be the first country to classify bitcoin as legal tender, along with the US dollar. The country’s president updated his Twitter account photo to include laser eyes, a business card for bitcoin believers. El Salvador’s $ 105 million bitcoin investment was worth it cut in half as the price has dropped.

US senators and mayors begin to promote cryptocurrency as an industry spent a lot on lobbying. New York Mayor Eric Adams, who was elected in November, said he would take his first three salaries in bitcoin. Senators Cynthia Loomis, a Wyoming Republican, and Kirsten Gillibrand, a New York Democrat, have proposed legislation that would create a regulatory framework for the industry, giving more power to the Commodity Futures Trading Commission, an agency openly courted by crypto companies.

Through madness, celebrities fueled the fear of missing out by whipping their NFTs on talk shows and talking about blockchain projects on social media. This year’s Super Bowl presented four ads for crypto companies, including Matt Damon, who warned viewers that “the state favors the brave.”

This overbearing optimism dissipated this spring as the stock market collapsed, inflation rose and the cuts affected the technology sector. Investors began to lose confidence in their crypto investments, moving money into less risky assets. Several high-profile projects collapsed amid draws. TerraForm Labs, which created TerraUSD, the so-called stable coin, and Celsius, an experimental crypto bank, collapsed, destroying billions in value and sending the wider market into congestion.

“The circular flow of funds raises questions about whether this whole ecosystem always needs outsiders to come in and maintain it. Said Farochnia.

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