Bitcoin (BTC) and other cryptocurrencies have lost hundreds of billions of dollars in value as a dramatic decline in the crypto market worsens.
On Saturday, January 22, the global crypto market cap stands at $1.62 trillion, following a 12.02% decrease over the last day. As a result, the crypto market cap saw $356 billion wiped from its value in just a single day as its price went from $1.98 trillion to $1.62 trillion. Notably, the last time the market cap was this low was on August 8, 2021.
Crypto to move in stocks?
In light of the fact that the crypto market currently looks bearish as it continues to shrink, some experts, including Andersen Capital Management’s chief information officer Peter Andersen considers that “crypto is headed for a major correction.”
Likewise, Gareth Soloway, the chief market strategist of InTheMoneyStocks.com, has said that the continuous Bitcoin volatility may cause the commodity to fall to below $20,000, but that the cryptocurrency’s long-term prospects remain bullish.
As a result, former hedge fund manager and host of Mad Money Jim Cramer considers that the money leaving the crypto market will head into stocks; he tweeted: “I think there will be a wave of money coming from crypto into stocks.”
Michael Saylor: Long term play
Bitcoin (BTC) bull and MicroStrategy CEO Michael Saylor is analyzing the factors that he believes are driving the crypto market downturn at the start of a new year.
In a new Bloomberg interview, Saylor unveils two factors that he says are contributing to the volatility experienced by the crypto markets so far this year.
“I think that there’s a lot of dynamics here. If you look at the entire crypto ecosystem, you have a set of regulatory uncertainty, especially regulatory uncertainty around stablecoins and crypto tokens and whether or not they’re securities. And that creates a little bit of anxiety.”
According to Saylor, Bitcoin is currently offering a “great entry point” for institutions especially as legendary investors such as Bill Miller allocate a huge portion of his portfolio to the flagship cryptocurrency.
“I feel like it’s consolidating at this level. This is a great entry point for institutional investors. I talk to high net-worth individuals, family offices, public company executives, private company owners and they watched Bitcoin run up in 2021. And there are a lot of people that would be afraid to own it if it was going up 400% a year.”