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Bitcoin, the oldest cryptocurrency in the world is facing a bloodbath. A Bank of America report suggests that the cryptocurrency has faced the fifth-worst collapse of assets in financial history, and by far, the biggest since the 1970s. 

Reportedly, Bitcoin has plummeted 77 per cent from its peak trading mark of $70,000 in November last year. The crash is thought to be much steeper and greater in scale than the one faced by the likes of Mississippi Co, South Sea Co and Roaring 20s.

The fall becomes precarious, given that Bitcoin accounts for more than 41 per cent of the crypto market and the previous instance it plunged to such depths was at the peak of the pandemic two years ago. 

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The report also makes a comparison of Bitcoin's downturn with the dotcom bust nearly two decades ago. It states that the latter witnessed a decline of 76 per cent, which is only one per cent lower than the fall witnessed by Bitcoin. 

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The fall of Bitcoin comes roughly at the same time as when FTX Group, another big name in the cryptocurrency sector announced it had filed for bankruptcy in the US and that its CEO Sam Bankman-Fried, had quit. 

The "cryptogenius" also known as "modern JP Morgan" for his intervening to save volatile exchanges, now faces the impending prospect of the collapse of his company. 

Read more: Who is Sam Bankman-Fried, the former FTX CEO & 'cryptogenius' who lost $14.5 billion in a day

The collapse of FTX, which seemed inconceivable only a few days ago, is upending the whole cryptocurrency sector. After significant concerns regarding the state of the FTX balance sheet were raised last week, it was precipitated by a crisis resembling a bank run.

(With inputs from agencies)

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