(MENAFN) Bitcoin and cryptocurrencies saw massive falls in 2022 after many crises, bankruptcies as well as market disturbances, whereas a shortage of regulation and liability has stunned stockholders' confidence in digital currencies and tokens.
Cryptocurrencies made a robust beginning to the year with peak optimism from crypto fans usually using the statement: "To the Moon!" for Bitcoin and several other altcoins -- popular and unknown.
But macroeconomic doubt, interest rate surges by the US Federal Reserve as well as additional central banks and inflation increasing to peak levels gradually lowered those high hopes.
Even though crypto supporters witnessed Bitcoin and others as a hedge versus record inflation as well as devaluation in fiat currencies, such as holding gold and silver versus inflation, the view was quickly discharged as cryptos began falling in the April-June period.
While central banks' hawkish financial tightening and rate rises have decreased the amount of liquidity in the markets, they also stopped additional funds, mainly in the technology industry.
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