Why is Bitcoin Falling ?

The bitcoin/crypto market has shown the most dramatic selloffs in years this week as the prices of all the top cryptocurrencies declined as much as 35% week-over-week as fears of a broad economic recession intensified. The total global market cap of cryptocurrencies sank below $850 billion as top tokens tumbled this week.

The host of Mad Money, Jim Cramer, has predicted that bitcoin’s price will fall to $12,000. Nonetheless, he has recommended bitcoin and ether for people wanting to invest in crypto.

The latest crypto crash occurs as investors grow fearful of macroeconomic conditions and the Federal Reserve’s efforts to curb inflation. Crypto investors have also seen a number of core protocols and services threatened by the rapid depreciation of assets with some worrying that the inter-reliance of these various services could cause cascading shutdowns. Many experts are warning this may be the beginning of a “crypto winter,” an extended period when prices fall and remain low, such as they did between early 2018 and mid-2020.

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If bitcoin drops below $20,000, several experts predict it could go far lower. Having fallen more than 30% over the last week, investors are wondering where the bottom may be for bitcoin as well as other digital assets.