The top cryptos have been trading on the backfoot this year with barely any positive momentum in the indices. The market experienced a sense of fresh air early this month as Bitcoin reached the $47,000 mark. However, the spike was short-lived and BTC saw a reversal falling back to $42,000 levels. The market is now struggling to claw back to its weekly highs testing the patience of investors.
Also, all top cryptos are now down more than -40% from their all-time highs which they reached last year. The market saw a steep fall in January this year as Bitcoin crashed, dragging all altcoins down with it. Just when the market dusted itself from the fall, the Russia-Ukraine war sent the markets tumbling down wiping all profits made last year.
Here’s How Much Top Cryptos Are Down From Their ATH
The Hardest Hit
Cryptos such as Solana, PolkaDot, Cardano, Ripple, and Dogecoin are the hardest hit and are down more than -50% from their ATH. ADA, XRP, and DOGE are hammered in the indices and might not claw back to their previous numbers anytime soon. They’re all down around -70% from their ATH.
The market is now a mixed bag of emotions that isn’t shooting up drastically nor dropping down. All major coins are mostly trading sideways testing the patience of investors. Moreover, a bull run is nowhere on the horizon and is sending out a message that breaching its previous ATH is unlikely.
Why is the Market Underperforming?
The market barely spiked this year due to various factors affecting the global financial sector. The factors are:
- The economy around the world is slowly coming out of the Covid-19 induced lockdowns.
- There’s uncertainty in the market due to job losses and salary cuts across the globe.
- There is fear in the market that the Feds might hike interest rates. This makes borrowing money more expensive and the cost of doing business dramatically increases. In return, the development would impact businesses and common people as a whole and impact the markets.
- Inflation reached 7.9% in the U.S this year, the highest ever in the last 40 years. The cost of living, and consumer goods shot up while wages either remained stagnant or dipped.
- Gas prices have shot up dramatically in the U.S reaching $5 to $7 due to the Russia-Ukraine war.
- The Russia-Ukraine war is still ongoing and the conflict is destabilizing the market.
All these factors collectively combined is dragging the market down and a spike in price is highly unlikely.