Bitcoin market cap drops $280 billion as cryptocurrency adoption fails in 2022

The value of cryptocurrencies has been diving due to the current carnage in the crypto market. Likewise, the largest and most popular cryptocurrency, Bitcoin, continues to lose value. Since 2022, the coin has been on a continuous decline.

According to the provided statistics Tradingview.comOn January 1, the Bitcoin giant’s market cap hovered around $883.89 billion. However, its market capitalization as of May 10 was around $568.55 billion after the continued decline in value.

Related reading | Market Downtrend Triggers Bitcoin Inflows from Institutional Investors

This means that Bitcoin’s market capitalization has seen an outflow of $315 billion since the beginning of the year, a loss of more than 35%.

The drop in the price of DeFi assets has also led to a decline in the market value of DeFi. Meanwhile, Bitcoin faced falling prices, falling from $46,726 on Jan. 1 to $29,865 on May 11.

In other words, the price of BTC at the time of writing has fallen by 35%. Or that the price is down $17,861 from where it was before the start of the year.

Crypto Carnage Happened Amid Bitcoin’s Growing Popularity

Bitcoin’s inability to capitalize on the global adoption of crypto in 2022 across industries is the reason for these year-to-date (YTD) losses. It also includes the recent adoption of bitcoin in the Central African Republic (CAR), the second country after El Salvador to make bitcoin legal tender.

In terms of adoption, the Bitcoin network has reportedly installed 3,000 ATMs in 2022 Users can buy and sell bitcoins here. As of May 11, the number of such machines was 37,338.

Players in the industry are working hard to spread the growth of Bitcoin in 2021, with more than 10,000 ATMs installed worldwide.

Not only is Bitcoin adoption increasing; almost 700 new cryptocurrencies 30 cryptocurrency exchanges launched in March alone. At the time of writing, there are 525 cryptocurrency exchanges with 19,384 cryptocurrencies in circulation.

Bitcoin price is currently trading above $30,000. | Source: BTC/USD price chart from TradingView.com

Cryptocurrencies are now pegged to stocks

The cryptocurrency-equities relationship has grown since the adoption of blockchain technology by many financial institutions over the past year.

Traditional financial markets joined the crypto sector in a sharp sell-off as the Fed tightened monetary policy to spread fears. As a result, Wall Street was in trouble, with its index down 3.75%.

Related reading | Long-term Bitcoin holders capitulate in panic

The price of Bitcoin finally fell below $30,000 in July 2021, when its value hit the $29,301 mark before rebounding.

“Bitcoin could see a small rally around $35,000, but unless we break the trendline around $37,000, I would expect $29,000 in the next few weeks or a week,” said Crypto analyst Wendy O in a new social media video.

Many investors refer to bitcoin as the gold of the digital age, a potentially safe investment against inflation. However, seeing the price volatility of cryptocurrencies, the market does not view virtual assets as reliable stores of value.

Featured image from Pixabay and chart from TradingView.com

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