The majority of winning portfolios this year have become net losers as a result of the market fall, and new investors may have given up on Bitcoin.
The biggest altcoin by market cap, ether, also had an 82% correction as its price fell from $4,800 to $900 in just seven months.
Years of historical data demonstrate that, following parabolic bull market rises, drawdowns in the 55%–85% range are typical.
Cryptocurrency values fell precipitously throughout 2022 as a result of scams, Ponzi schemes, and extreme market instability.
The demise of Terra's LUNA and Celsius Network, as well as Three Arrows Capital's abuse of leverage and client funds, all dealt successive blows to asset prices in the cryptocurrency market.
Currently, Bitcoin has the highest market capitalization within the industry, and traditionally, altcoin values have tended to move in tandem with the price of BTC.