After a historic surge in price, Bitcoin’s value dropped on Wednesday after the Federal Reserve announced that no adjustments would be made to the Federal Funds rate in May. At the end of March, Bitcoin’s price hit a historic high of $69,919 and has since fallen to $57,841. Here, we will look at other Bitcoin price drops and what drove the value of the most popular cryptocurrency down during those circumstances.
The drivers of the 2022 Bitcoin price tumble
In 2022, Bitcoin’s price fell to its lowest level when it was driven down to $16,500 from a high of $64,000 around a year earlier.
When this dramatic fall occurred, the crypto world witnessed the collapse of the non-fungible tokens (NFT) market. The demand for NFTs dropped after many in the market began to see that they could not hold value as well as other cryptocurrencies, making them less desirable investments. While Bitcoin can be purchased in extremely small units, an NFT must be bought at its total retail value, which can reach the million-dollar mark. In 2022, an NTF of the first Tweet sent by Twitter founder Jack Dorsey was sold for $2.9 million, and the current owner, who was looking to sell the asset, could not mind a buyer willing to spend more than $12,000.
However, those who have been investing in Bitcoin are not safe from major declines in the value of the market. Compared to this time last year, the value of Bitcoin has decreased thirty-three…
