Nigerian Bitcoin traders are currently experiencing losses as the value of the crypto continues to drop.
BizWatch Nigeria understands that since the turn of the year, the market value of Bitcoin has dropped by 52.84%, and consequently wiping off $473.34 billion in market capitalisation in the process, and leading to numerous liquidations.
At the start of 2022, Bitcoin stood at $47,686.81 with a market cap of $902.10 billion. But as of Tuesday, June 14, it was $22,487.39 with a market cap of $428.76 billion as at the close of business on the day. This development follows the drop of Monday, June 13, when Bitcoin fell below $25,000.
The crypto economy has also fallen from highs of about $2 trillion to $938.41 billion.
Speaking on the development, a Bitcoin trader, who spoke on a condition of anonymity, predicted that the cryptocurrency may drop further to $10,000.
“I have been in crypto for a while. In the past few weeks, let’s say about eight weeks if anyone tells you they’ve not lost money they are lying,” he was quoted as saying. ‘Loses is part of this. On a personal level, and with my firm, we’ve lost about N40 million, this is to be conservative. We are big traders. I won’t call it a loss though, because as long as you are still in the market, you will still get your money back. But on a temporary level, if we close our position now, we would be forfeiting nothing less than that amount.
“And this loss is across the board. I can’t share some of these personal losses with you but in a group that I belong to, everyone asides from developers, have lost a lot of money since the turn of the year. A lot of people have lost money.
“Crypto coins by nature are volatile, and we are currently in a bear market. But as we know this doesn’t last for long and there will be a bull market very soon. We don’t know when.”
According to the trader, prices are falling because of fear, uncertainty, and doubt. He added that the Russian-Ukraine war was also taking its toll on the market.
He stated, “There is also the issue between Russia and Ukraine which brought a lot of instability to the market. People got scared and started selling and the more people sell, the more the downtrend in the market becomes.
“Recently, residents of the US also had to pay their taxes, and whenever this happens, residents start selling to raise payments. About three or four weeks before the deadline, people start selling, which affects the market since these are heavy investors and their sales affect the market.”