- Bitcoin prices dropped in mid-May, but it’s still 65% higher than end of last year.
- Analysts attribute the fall to rate hikes by the Fed and the collapse of FTX exchange.
- People turned to BTC and ETH as a safe haven for their crypto portfolios.
Overview of Bitcoin Price Changes
In May 2021, bitcoin was trading at $30K – a ten-month high. Then it fell into the high $26,000 range. This caused some concern among digital currency investors because it was lower than what it had been at the end of 2022 (when it was trading at $68K per unit). The crypto market lost over $2 trillion in valuation over this same period.
Reasons Behind Price Drop
Analysts attribute the price drop to rate hikes by the Federal Reserve, as well as the collapse of FTX (a cryptocurrency exchange). These two events caused investors to become wary about other smaller assets in the crypto market, leading them to seek out more mainstream tokens like BTC and ETH for stability.
Positive Outlook Remains
Despite these recent events, analysts are reassuring digital currency investors that bitcoin is still doing very well compared with where it was one year ago. This should provide some comfort given that bitcoin is currently about 65 percent higher than where it was at the end of 2022.
Overall, although there may be fluctuations in bitcoin’s price from time to time due to external factors such as rate hikes or collapses of exchanges, its value has remained relatively stable throughout 2021 and early 2023. Investors can take confidence in knowing that even after drops like those seen recently, bitcoin remains far above its level from one year ago – providing a sign of long-term strength and sustainability.