During early 2020, Bitcoin; the most notable cryptocurrency in the world had a monetary value between USD8,000 to USD11,000.
The Covid-19 pandemic's global outbreak and its impact had resulted in many of the traditional financial instruments facing challenges and roadblocks. Banks were slow in its transactions due to the subsequent slow down in respective economies.
But trade analysts and financial experts started chiming a song with similar words; all were unanimously agreeing towards the potential growth in various crypto-assets, especially Bitcoin (BTC) and Ethereum (ETH); two of the most well-regarded, identified and traded cryptocurrencies in the world.
This was proven to be a correct prediction when both BTC and ETC went on to trade at all-time highs, during early 2021. Bitcoin skyrocketed to an all time high of more than USD64,000 during the first half of last year before it fell back below USD30,000 indicating the recent 50 percent plummet.
On the other hand, ETH traded from USD730 to USD4000 by May and hit an all-time high of USD4,800 in November last year.
This was last year's news, since Bitcoin has recently observed a serious drop in its 'intrinsic' value. It was reported that Bitcoin had traded below USD27,000 on Thursday, 12th May 2022, nearly down 9 percent from the previous low.
Moreover, this drop was reflective of investor behavior as most of the major players with some of the largest trading portfolios began to dump off their "riskier" assets when US Bureau of Labor Statistics reported higher consumer prices for April 2022.
The crash of Bitcoin had also impacted Coinbase, which is the largest cryptocurrency exchange platform in the United States by trading volume.
Coinbase reported a first-quarter loss by Tuesday last week, while its revenue fell by 27 percent from a year back. Moreover, its shares dwindled by more than 25 percent on Wednesday, previous week, which was the lowest at which its shares had dropped ever.
The woes did not end here as Coinbase continued to trade over 85 percent below its all-time high price from last November, with shares already losing half of their value just within past week.
Its losses largely reflect the horrific plummet by Bitcoin, which had only managed to bounce back to hit a trading level of just USD36,000 by previous week's end.
While it is not entirely sure what singular effect led to the plummet of Bitcoin and other cryptocurrency assets, it was reported that the collapse of TerraUSD (UST) had a major impact on cryptocurrencies by the end of the previous week.
The effect is not exclusive to Coinbase while other exchangers have also addressed the loss of their respective share values.
One of the reasons why the crypto-plummet continued was the drop in stock market trading, which as mentioned earlier, was driven by the Federal Reserve's announcement of the biggest interest rate increment in over 20 years.
Meanwhile, several experts have projected that the Bitcoin price may dip even below its current traded volume due to its volatility as well as possible 'red trading' in the stock market, as most investors are currently worried about selling-off assets rather than buying.