Thu. May 26th, 2022

Bitcoin has lost nearly half of its value since its peak in November, when cryptocurrency prices continue to plunge while large economies appear to be slowing their growing popularity.

And it’s not just Bitcoin, as cryptocurrencies have generally had a sad start to the year. Bitcoin has fallen over 8 percent in the last 24 hours, and at the time of release was worth $ 35,348 ($ 49,205).

The world’s most valuable cryptocurrency has plunged over 20 percent since the beginning of the year.

Bitcoin’s dive has been mirrored across other cryptocurrencies. (Getty)

In November, it traded at a record high of $ 68,990 ($ 96,036).

Its peers have fared worse.

Ethereum, the world’s second most valuable cryptocurrency, has fallen more than 12 percent over the past 24 hours and traded at around $ 2,400 ($ 3,340) by mid-morning on Saturday, according to CoinDesk.

That’s a drop of nearly 30 percent since the start of the new year.

Investors have been nervous about digital currencies and other riskier assets ever since the US Federal Reserve signaled that it could liquidate economic stimulus more aggressively than expected.

Cryptocurrency’s infamous volatility is raising its head again. (Unsplash)

Governments are also cracking down. On Thursday, Reuters reported that Russia’s central bank has proposed a ban on cryptocurrencies and mining.

Russia is one of the largest cryptocurrencies in the world, but its central bank said digital currencies could pose a threat to the country’s financial stability.

The Russian proposal comes just a few months after China launched a full-scale crackdown on cryptocurrency that banned both trade and mining.

Other countries are also flirting with a ban on crypto. In November, India said it was preparing to introduce a bill that would regulate digital currencies, although much is still unknown about that bill.

Bitcoin has lost almost half of its value since its highest in November.

Earlier this week, Indian Prime Minister Narendra Modi said global cooperation is needed to tackle cryptocurrency issues.

However, not everyone is pessimistic. Goldman Sachs said the price of bitcoin could reach more than $ 100,000 ($ 139,000) within the next five years.

In a report released earlier this month, the bank’s analysts said they saw strong gains ahead because bitcoin would increasingly steal market share from gold.

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