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Bitcoin has fallen more than 70% in value since it hit its 2021 high of over $67,000, now worth just under $19,000.
The leading cryptocurrency has taken a beating in 2022, continuing a decline that started in November last year. For most of the year, the value remained within touching distance of $40,000, but two large drops – one at the beginning of May and one last week – has brought the currency to less than one-third of that November high.
Bitcoin now holds about as much value as it did during its previous record high in Dec. 2017 of $19,363.16. The currency spiked to new highs in 2021, with a dip for six months during which it was worth around $30,000 before hitting its all-time highest value.
Crypto traders have felt the selling pressure in recent weeks: Ledn Inc. co-founder and CSO Mauricio Di Bartolomeo said Thursday during an appearance on "Mornings with Maria" that there has been an "implosion" in some areas of the crypto market that has wiped out billions of wealth.
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Attendees pose for photos in front of The Miami Bull during the Bitcoin 2022 Conference. | Getty Images
"I think that's creating some challenges which are added, adding to the further selling pressure," Bartolomeo said. "But I think what this exemplifies very well is that not all lending platforms and not all assets within crypto are created equal."
Bitcoin and other cryptocurrencies have struggled in sympathy with the broader stock market, which is contending with scorching-hot inflation. The Federal Reserve, which has already begun hiking interest rates to bring inflation down, will offer an update on its outlook for the economy this week following its two-day policy-setting meeting.
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Billionaire crypto investor Mike Novogratz recently told CoinDesk's 2022 Consensus Conference that Bitcoin isn’t going to "trade well before the Fed flinches and takes its foot off the brake."
"My hope is that by the fourth quarter, the economy will be slowing enough that the Fed says we are going to pause, and then you will see the next crypto cycle start," he explained. "Then bitcoin will break from equities and lead markets."
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Gemini founders Cameron and Tyler Winklevoss have warned that the industry is entering a "crypto winter," described as a "contraction phase settling into a period of stasis." The cryptocurrency exchange recently cuts its staff by 10%, citing "turbulent market conditions that are likely to persist for some time."
FOX Business' Lucas Manfredi contributed to this report.