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Crypto market cap sinks to pre-2021 levels; Is more doom ahead?

Crypto market cap sinks to pre-2021 levels; Is more doom ahead?

As one of the worst crises continues to wreak havoc across the cryptocurrency industry, its market capitalisation has suffered a tremendous blow, knocking it down to levels not seen for years and well below its all-time high (ATH).

Indeed, the total crypto market cap currently stands at $834 billion, which is close to the figures last recorded in December 2020, just before the market started rallying upwards, surpassing $1 trillion and ending up at above $2.4 trillion by May 2021, as per CoinMarketCap data retrieved on November 18.

Total crypto market cap. Source: CoinMarketCap

According to the charts, the market managed to repeat similar success only two times more – in November 2021 and March 2022 – before the FTX liquidity crunch and ensuing market-wide carnage sunk it below $1 trillion. 

As things stand, the crypto market’s current value is only a portion of its ATH from November 8, 2021, when it reached $2.9 trillion, with its current figures representing a 71.44% decline since that peak.

In recent days, the FTX meltdown stoked a significant amount of ‘FUD’ (‘Fear, Uncertainty, and Doubt’) and predictions of doom. However, as crypto trading expert Michaël van de Poppe asserted, “it’s such a giant opportunity to be able to accumulate crypto at these levels.”

Criticism versus optimism

Meanwhile, the crash has drawn some of the market’s most fervent critics to reiterate their scathing views, including billionaire Charlie Munger who labeled crypto as “partly fraud, partly delusion” that is “good for kidnappers.”

That said, hope remains alive in the crypto market, as its largest asset – Bitcoin (BTC) – is showing signs of a possible price rally in 2023, recording the largest descending broadening wedge for the flagship token in history, as Finbold reported.

On top of that, Tesla (NASDAQ: TSLA) CEO Elon Musk and personal finance bookRich Dad, Poor Dad’ author Robert Kiyosaki continue to believe in Bitcoin as an asset, although they both acknowledged that difficult times were in store.

In the meantime, Finbold assembled the key tips for surviving the ongoing crisis, as shared by a former stockbroker, commonly known as the “Wolf of Wall Street,” Jordan Belfort, including setting a three-to four-year horizon for Bitcoin, focusing attention on BTC and Ethereum (ETH), and not panicking.

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk. 

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