As the crypto market remained chaotic, the leading cryptocurrency Bitcoin fell below $18,000 per digital coin on Sunday, a drop of more than 70% from its record high of $68,000 in November last year.
The prices of top cryptocurrencies fell by up to 35% last week as a result of economic recession fears.
The global market capitalization of cryptocurrencies has fallen below $850 billion, having recently topped $1 trillion.
The second-largest Ethereum cryptocurrency fell below $1,000 on Sunday, falling nearly 80% from its all-time high in November of last year.
The latest crypto crash occurs as investors are concerned about global macroeconomic conditions and the US Federal Reserve attempts to contain rising inflation.
Analysts predict that Bitcoin will fall to $14,000 this year.
Bitcoin’s likely bottom range of $14,000 represents a drop of around 80% from its all-time high of $68,000.
“In the next 670 days, BTC will capitulate in the next 6 months and hit cycle bottom ($14-21k), then chop around $28-40k in most of 2023 and be at $40k again by next halving,” tweeted Venturefounder, a contributor at on-chain analytics platform CryptoQuant.
According to Coindesk, Bitcoin has historically experienced asymptotic price rises followed by steep drops, which “typically played out over several months to two years.”
These periods are referred to as “cycles” by cryptocurrency observers.
In December 2017, Bitcoin reached a high of $19,783 before falling back into the four-digit range just one month later.
During the 2013-2014 cycle, Bitcoin reached an all-time high of $1,127, a level that it successfully defended during its 2018 decline.
