Is Bitcoin on the decline?

The crypto behemoth seems to be losing its grip in the entire crypto market capitalisation as its dominance slipped below 40 per cent , which was in the range of 45-50 per cent during its golden days.

Yet the world’s most famous cryptocurrency has dropped just about 20% so far this year , falling as low as $33,000 on January 24 before rebounding. Just over three months ago, Bitcoin hit its all-time high of nearly $69,000 on November 8, 2021.

The values of risky assets—like Bitcoin—tend to decline in the wake of the Federal Reserve making policy changes to become more fiscally conservative . More broadly, as Bitcoin matures and becomes more widely adopted, the price of Bitcoin is increasingly correlated with the prices of traditional assets like stocks.

Why? One major reason: they’ve lost access to their account. In fact, more than $100 billion in Bitcoin is estimated to be lost – but some is recoverable , says at least one firm. A 2017 report from Chainalysis, a forensics company, estimated that between 2.78 million and 3.79 million bitcoins have been lost.