Why Bitcoin Price dropped 57% From its High?

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If you have ever invested in digital currencies like Bitcoin, Ethereum, TerraUSD(UST), etc.
and if your portfolio has these currencies, that means your portfolio dipped into the red and you have lost your 20% and above from your investment.

Bitcoin price
Bitcoin (moneycontrol.com)

Cryptocurrency like Bitcoin price dropped 57 % from its all-time high and its market cap fell to $ 30962 on 11 May 2022, 2 percent fell in 24 hours. It continues falling for 7 days. It is the most popular and largest cryptocurrency in the world.

The second largest cryptocurrency (Ethereum) also fell from its high and its market capital fell 15 % within 7 days. It recovers some points but overall it is in red. Current Ethereum is $2417 on Wednesday at 3 pm according to coinmarketcap.com. Both digital and stock exchanges fall down in past some days. Nifty 50 was down by 3.80% in the past 5 days, the Nasdaq fell 50% from its high and The benchmark S&P 500 dipped 15% in 2022. Both Indian and foreign are falling in the past several days. According to Glassnode, 60% of investors’ portfolio is in green and the remaining investors is at a loss.

TerraUSD (UST) fell 47% in 24 hours and the price was down 51% in the past 5 days. UST, an algorithmic stablecoin , maintains its price of $1 with Luna its sister coin so traders swap 1UST coin worth $1 with 1 Luna coin worth $1. The current UST coin price is $0.48 according to coinmarketcap.
Bitcoin price is between $31,000 and $32,000 and most investor has lost their large investment.
Cryptocurrencies are known for their sudden price swings. Before Individual controls cryptocurrency markets but now hedge fund managers and big investors enter this market and they control the market. Due to this reason prices suddenly increase and decrease. Traditional and digital markets are not performing well in 2022. According to Glassnode, the Bitcoin price suddenly dropped by big investors and institutional investors. They play safe and get money out of these markets. Due to the crash bitcoin market in December, the transaction fee has been hiked but it could not stop falling down. Some investors with little and medium stakes in cryptocurrencies have held their investments. Some are buying in dip and strengthening their position. More than $3.15 billion in value of an investment is moved out of the market which means big investors are withdrawing their money from the markets.

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