According to estimates, this year saw a loss of over USD 30 trillion in global wealth, of which over USD 2 trillion came from cryptocurrencies.
The worst stock sell-off in 50 years occurred in the first half of 2022. US stocks had lost USD 7 trillion in value by June, and another USD 2.2 trillion had been lost by the middle of September. The S&P finished at its lowest point since 2022 on September 26 and the Dow Jones formally entered a bear market at that time.
Gold hasn’t been exempt either; the market has seen a decline in the price of the metal of 10.92% so far this year. According to sources, the US treasury market, which many people view as a safe haven investment, has lost more than 10% of its value this year, marking its worst annual loss and first back-to-back annual decrease since the early 1970s.
Cryptocurrencies haven’t fared much better, with a market value loss of more than USD 2 trillion since January. Bitcoin has decreased by 52.39% this year alone, Ethereum by 58.50%, while Jaltech’s cryptocurrency basket has decreased by 59% overall since its launch.
Are we still near the bottom of the market, and if not, would a subsequent sell-off be a good opportunity to bring in fresh capital?
Investors should remember Warren Buffett’s adage, “[Investors] should be afraid when others are greedy, and greedy when others are scared,” as it applies to his famous statement. Has an era of greed just ended, and is a period of dread about to begin (or has it already begun)? If that’s the case, may we be seeing the market’s bottom soon? With almost USD 50 billion spent this year alone, the investing doyen has made it apparent that he believes this.
To read our blog on “Forget P2E—factory NFTs are the new crypto gaming meta,” click here