The cryptocurrency market has experienced a notable collapse over the past 24 hours. In particular, Bitcoin, among others, managed to fall below $24,000, although yesterday it was valued at $25,000. Altcoins have traditionally experienced a more significant collapse.

At the same time, the popularity of queries about Bitcoin and Etherium on Google is at its lowest point in the past year. In particular, here is the corresponding graph about BTC.

And this is what the similar figure for Etherium looks like.

And this is quite a telling situation. Still, coin rates are now much closer to their potential bottom at this stage of the collapse than they were a year ago. However, novice investors tend to ignore coins after a series of collapses and already enter positions much later. This actually explains the losses reported by bankers.

Who makes money from cryptocurrencies?

One of the conclusions of the report is that amateur investors began to enter the crypto market en masse after Bitcoin rose above the $30,000 mark. It is in this zone that there has been the most buying activity for BTC. However, almost a year and a half has passed since the cryptocurrency reached its all-time high, and Bitcoin has fallen by about 64 percent in that time.

Here’s how analysts are commenting on it.

Data from major cryptocurrency trading platforms from August 2015 to December 2022 shows that, as a result, most crypto holders in almost every country in the world have incurred losses on their Bitcoin investments.


And that sounds strange enough, because in August 2015 Bitcoin was valued at $225, but in 2017 BTC could be bought for $2,000. Today, however, the first cryptocurrency is valued at $24,000.

Apparently, many investors got rid of the coins on subsequent rate crashes, which is quite typical for beginners. Otherwise, it would be quite difficult to explain this trend.


The report drew another obvious conclusion – the collapse of the Terra project ecosystem in May 2022 sent shockwaves through the industry and caused the price of the vast majority of crypto-assets to collapse. In addition, Terra’s problems caused significant damage to the reputation of cryptocurrencies, which led to relatively low institutional inflows to the industry in 2022, i.e., money from professional big investors.

According to Decrypt’s sources, analysts also mentioned the bankruptcy of cryptocurrency exchange FTX last November. The Terra and FTX incidents contributed to spikes in trading activity, but they were “at the expense of smaller players”. Consequently, large investors were getting rid of coins while amateurs were buying them at “inflated” prices. On this basis, urgent action needs to be taken, the bankers believe. This is their point of view.

What has happened shows that the crypto industry needs better methods to protect investors’ interests.

How to implement this idea is unknown. Still, potential losses are caused by cryptocurrency market volatility, from which there is no way to get rid of. Perhaps, the bank's representatives are counting on exchanges to conditionally compensate novice traders for their losses, but it makes no sense.

US regulators are working on it – at least, that’s what their representatives say. However, the actions against Kraken and Paxos suggest that it is easier to “bomb” the industry with bans rather than support its development.

😈 YOU CAN FIND MORE INTERESTING THINGS ON OUR YANDEX.ZEN!

Investor protection is indeed important, but it needs to be done in the right way. In addition, it is worth considering that Bitcoin helps to fight corruption and lack of democracy in some countries. This opinion was voiced the day before by Alex Gladstein, Director of Strategic Issues at the Human Rights Defense Fund.

In a recent interview, Gladstein noted that Bitcoin represents freedom of speech, property rights and open capital markets – all of which suppress tyrannical governments. In turn, the latter needs various restrictions, and BTC can prevent that from happening. Here’s his rejoinder, cited by Cointelegraph.

This is what China and the Russian Federation need to survive, they need censorship, they need closed capital markets and confiscation. Bitcoin makes it much harder to integrate these processes.

Gladstein predicts that there will be many more triggers in the coming years that will cause people to experience “technical and liquidity problems when using traditional financial services”. As a result of these transformational processes, more and more people will switch to BTC and other cryptocurrencies as an alternative, the expert believes.


Thanks to statistics, we can conclude that many novice crypto investors could not withstand the psychological pressure of market crashes that followed their purchases. Consequently, they gave up and got rid of assets, thus fixing their own losses. And this is quite unexpected, because today the same BTC is tens of times more expensive than it was in 2015. That means next time investors should do more research on the projects they buy - it will allow them to believe in their investment and wait out collapse phases.