Because of a months-long shakeout, the crypto market skilled probably the most drastic drawdowns in its historical past in 2022. However questions are arising about when (if?) main cryptocurrencies will get well.

The worldwide crypto market capitalization, which makes up the entire worth of all crypto belongings (together with stablecoins and tokens), has fallen roughly 64% from $2.2 trillion to about $797 billion 12 months to this point, based on CoinMarketCap knowledge. The 2 largest cryptocurrencies by market cap, bitcoin and ether, have fallen 64% and 67%, respectively, throughout the identical timeframe.

With a lack of greater than half their worth, one may argue that these cryptocurrencies can’t get well. However whenever you zoom out and take a look at the general image, issues aren’t that dangerous for bitcoin and ether, regardless of what transpired this 12 months.

Let’s take a look at how vital crypto and international occasions from this 12 months affected the 2 greatest cryptocurrencies.

Picture Credit: Coinbase (opens in a brand new window)

Picture Credit: Coinbase, (opens in a brand new window) Etherscan (opens in a brand new window)

When the Terra/LUNA ecosystem collapsed in early Could, inside about six weeks, over a billion {dollars} of the entire crypto market cap was worn out, dropping from about $1.8 trillion to about $820 billion, knowledge exhibits. Evaluating in opposition to the biggest cryptocurrencies once more, bitcoin and ether each fell over 50% in that interval.

Simply specializing in that occasion, the decline seems to be (and, honest sufficient, was) brutal.

But, since that massive drop, each bitcoin and ether have held in the identical vary, even after FTX, one of many largest crypto exchanges, collapsed final month and filed for Chapter 11 chapter.