What’s next for Bitcoin as the crypto drops under $30,000? (Cryptocurrency:BTC-USD)

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While equities are attempting to pare some of the big losses they saw on Monday, the cryptosphere is still in the gutter, with Bitcoin (BTC-USD) falling below $30,000 for the first time in more than a year. The souring sentiment has also weighed heavily on crypto miner stocks like Riot Blockchain (RIOT) and Marathon Digital (MARA), as well as exchange Coinbase Global (COIN) and Bitcoin leveraged firms like Michael Saylor’s MicroStrategy (MSTR). Even TerraUSD (UST-USD), the third largest stablecoin by market cap, lost its peg to the U.S. dollar, dropping to as low as 69 cents and causing a swathe of investors to liquidate their holdings.

The skeptics: While crashes have hit Bitcoin (BTC-USD) before, some say enthusiasm among dip buyers – that used to help prices quickly rebound – is fizzling. One of the biggest advantages of crypto was that it was supposed to provide a hedge against inflation, though that theory has gone up in smoke with Bitcoin (BTC-USD) getting even more devalued than real-world currencies in a time of red-hot inflation. Another long-term incentive was that crypto could provide a store of value via anonymous transactions and wallets, but not only have governments gotten better at tracking the assets, they are on the verge of regulating them big time.

The believers: Bitcoin (BTC-USD) and cryptocurrencies are widely known for their violent price swings, and have been selling off along with traditional markets due to macroeconomic uncertainty. “Crypto is going through the lull that the internet went through,” added billionaire entrepreneur Mark Cuban. “The use of Smart Contracts to improve business and profitability” will be the next driver, though “the chains that copy what every one else has, will fail.” Meanwhile, El Salvador, the first-ever country to adopt Bitcoin as legal tender, bought the dip again, scooping up 500 more Bitcoins (BTC-USD) for $15.4M to mark its largest purchase of the crypto on record.

Statistics: The global market cap for the entire crypto market is now hovering around $1.5T, down 50% from the $3T milestone seen last November, according to data from CoinGecko.com. 40% of Bitcoin (BTC-USD) holders are also underwater on their investments, per Glassnode, and in the last month alone, 15.5% of all Bitcoin (BTC-USD) wallets fell into an unrealized loss.