81% of Cryptos Are Down 90% From All-Time Highs

Many crypto investors have seen significant losses.

Bitcoin (BTC) fell below $20,000 this weekend in what some insiders are describing as crypto's worst week ever. Unfortunately, we're not just talking about one week. This is part of an ongoing drop in crypto prices that could continue for some time. On top of which, Bitcoin is faring better than many other digital currencies -- smaller altcoins are suffering more.

According to data from CoinGoLive, a staggering 81% of cryptos have fallen by 90% or more from their all-time highs. Some have registered even bigger price drops, and a number have collapsed completely. The site measures how far almost 4,000 top cryptos have fallen from their highs. Since there are a good number of stablecoins included in the 19% of cryptos that haven't recorded such dramatic falls, the true figure is even higher.

Even investors who didn't buy at all-time highs are likely struggling. Trading conditions this year have wiped out many of 2021's gains, so a number of buy-and-hold investors who bought for the first time last year will be looking at significant losses.

How far crypto has fallen

The overall crypto market cap peaked last November and is now down about 70% from its high. This pattern repeated itself through the crypto charts -- many digital currencies have recorded similar losses.

Here's how the top 10 cryptos by market cap stack up in terms of percentage losses from their all-time highs:

The least-worst performers are Binance Coin and Bitcoin. Bitcoin is the biggest and most established crypto. It accounts for around 40% of the total crypto market, and is slightly less volatile than other cryptos as a result. Binance Coin is the native crypto for the popular cryptocurrency exchange. So far in this bear market, Binance has swum against the tide by hiring new staff even as other crypto platforms announced job cuts.

Dogecoin and Ripple are the only cryptos in the top 10 to have recorded losses of more than 90%. Ripple has been fighting a lawsuit with the SEC over whether it should have registered as a security. Dogecoin is the well-known meme token that soared in advance of Elon Musk's Saturday Night Live appearance and has had difficulty regaining its momentum ever since.

What it means for investors

If you are looking at significant losses in the value of your crypto portfolio, you're not alone. The challenge is that we could be in for even more price pain as crypto still faces some heavy headwinds. On top of which, some investors are now less confident of their initial reasons for buying crypto. Last year's optimism, when it felt as if prices could only go up, turned out to be short lived.

It's understandable if you're tempted to cut your losses and sell. But bear in mind that buying high and selling low flies in the face of most investment logic, particularly if you are a long-term investor. There are many good reasons to sell your cryptocurrency investments, but an industry-wide price drop isn't necessarily one of them. If you sell now, you won't be in a position to benefit from any potential recovery.

Think about why you originally bought each individual crypto and ask yourself if that original hypothesis still holds true. If it does, and you still see long-term value in a project, you may decide to hold on. If it doesn't, you might instead look for the best way to sell and minimize any losses. But a lot depends on your risk tolerance, wider investment strategy, and financial situation.

Bottom line

It's hard to deny we're in a crypto winter when so many projects are down by so much. The question now is how long the winter will last and how many cryptocurrencies will fail before the market recovers. As a crypto investor, navigating these waters can be tricky and require both patience and skill.