Why have Bitcoin and crypto lost 60% of their market cap since their all-time highs?

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Macro Markets, hosted by crypto analyst Marcel Pechman, airs every Friday on the Cointelegraph Markets & Research YouTube channel and explains complex concepts in layperson’s terms, focusing on the cause and effect of traditional financial events on day-to-day crypto activity.

The latest Macro Markets show begins by exploring why the crypto market capitalization is some 60% below its all-time high, while the S&P 500 is less than 15% away from its peak. For Pechman, the sector is suffering from a huge problem, as it doesn’t fit a commodity nor does it fit a foreign exchange currency. Moreover, not every mutual fund can hold crypto.

The lesson? If Bitcoin (BTC) and Ether (ETH) are mostly understood as alternative risk assets, that’s how they’ll trade. Consequently, one should not waste time looking for theories explaining why crypto has been unable to break new highs.

On to the next topic, according to Pechman, NVidia’s $2.3-billion short seller losses don’t provide the real picture. That’s because a short seller can endure pain if they don’t close the borrowing —…

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