Bitcoin has dropped by 45 percent, but its fundamentals remain unchanged

<p>The world's most valuable cryptocurrency has lost a significant amount of value in recent weeks. However, one expert assures investors that everything remains the same.</p> <p>Since its all-time high in November, the value of the flagship cryptocurrency Bitcoin (BTC) has dropped by 44.6 percent.</p> <p>Such stomach-churning volatility would understandably put even the most ardent crypto fan to the test. </p> <p>However, nothing fundamentally has changed within Bitcoin, according to BetaShares digital assets head Justin Arzadon.</p> <p>"The current price driver has been the Federal Reserve's hawkish stance and the threat of aggressive interest rate tightening over the course of the year, which will impact both the US and global economies," he wrote on the BetaShares blog.</p> <p>"The outlook has had an impact not only on the cryptocurrency market, but also on other risk assets such as high growth equities."</p> <p>Tailwinds from six months ago remain.</p> <p>Arzadon explained how all of the factors that pushed Bitcoin up 6 months ago are still relevant today.</p> <p>"Hyperbitcoinisation has continued, despite the fact that it is still in its infancy." "With the introduction of more regulated products over bitcoin, such as ETFs, adoption by institutions and corporations has continued to grow," he said.</p> <p>"A wave of banks around the world already provide, or plan to provide, the ability to access bitcoin directly from client bank accounts."</p> <p>He admitted that a 45 percent devaluation is "disappointing." However, "large drawdowns" are an unavoidable part of owning cryptocurrency.</p> <p>"Looking at the ten worst bitcoin drawdowns since 2011, Bitcoin has experienced pull-backs of more than 50% six times, and more than 40% four times — the worst being -93.7 percent over a period of 163 days from peak to trough in 2011," said Arzadon.</p> <p>"Each time, Bitcoin has rallied to set new highs."</p> <p>He also stated that the cryptocurrency market has historically been 5 to 7 times more volatile th