The crypto winter hammered cryptocurrencies on Monday as the price of a single Bitcoin fell sharply to around $25,600, an 18-month low.
The world’s largest cryptocurrency further tanked 7 per cent over fears of risk-off sentiment due to a sharp rise in inflation globally, especially the US.
Bitcoin (BTC) had reached an all-time high of over $68,000 in November 2021, and has fallen more than 60 per cent since then.
According to analysts, Bitcoin may hit a grim $14,000 this year at this rate.
In a Twitter thread, Venturefounder, a contributor at on-chain analytics platform CryptoQuant, forecast 2022 as Bitcoin’s year to “capitulate”.
“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,” one of the tweets read.
The likely bottom range at $14,000 would represent a drop of around 80 per cent for Bitcoin from the $68,000 all-time high.
Ether (ETH), the second largest cryptocurrency, also fell considerably.
Ethereum prices were hammered over the weekend, sending the world’s second-largest digital asset back below its 2018 peak.
On-chain analytics provider Glassnode reported that the Ethereum market has fallen below the ‘ETH Realized Price’ of $1,781.
On Monday, the cryptocurrency plunged to $1,355, resulting in unrealised losses of more than 40 per cent.