Crypto Market Value Crashes More Than $2 Trillion In 8 Months Amid Bloodbath

For the first time since breaching the $1 trillion market value in February last year, the total market capitalisation of all crypto assets fell below that mark yesterday. The crypto market cap stood at $970 billion at 2.50 pm yesterday, according to market tracker Coinmarketcap.

Bitcoin was hovering around $24,426, almost 12% down for the day, while Ethereum was below $1,240, i,e. more than 16% down, an ET report stated.

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The prices of bitcoin and other crypto-assets are reportedly down around 20-40% in the past seven days. Amid a historic bull run in 2021, the crypto market had hit new peaks.

Crypto had breached the $3 trillion mark in market cap last November. And now, its downfall which has slipped it below the $1 trillion mark signals a massive crash of around $2 trillion in market cap in the last eight months.

The continuous decline in crypto this year comes on the back of heightened investor fear amid record inflation in the US and the expectation of more interest rate hikes by the Fed to combat this, as per ET.

Yesterday, bitcoin hit its lowest mark in 18 months during early morning Asia trading. As per Bloomberg, the world¡¯s largest digital token, Bitcoin, had reportedly tumbled as much as 8.9% to $24,903.49, its lowest since December 2020.

The collapse of the Terra/Luna ecosystem last month, and one of the biggest crypto lenders Celsius pausing withdrawals yesterday morning (Asia time) have further reportedly eroded confidence in the global crypto space.

Other cryptocurrencies including Ethereum, BB, Cardano, Ripple, Solana, Dogecoin, Shiba Inu, Avalanche etc also declined as a broader sell-off continued

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Also Read: Meet The Dutch 'Bitcoin Family' Who Emigrated To 'Bitcoin Heaven' Portugal For Tax-Free Crypto

Stock Market Collapse Adds To The Mayhem

Adding more pain for the investors are the bleeding stock markets. Nifty50 tanked over 400 points yesterday, whereas Sensex plunged over 1400 points as markets bled heavily.

This resulted in domestic stocks eroding over Rs 6 lakh crore in value, as per the ET report. The BSE market capitalisation, which includes the market value on all BSE listed stocks, reportedly fell by Rs 6.45 lakh crore yesterday.

US stock exchange index Dow Jones Industrial Average too bled yesterday, closing at over 875 points down.

Also Read: Bitcoin Sinks Below $25,000 To Hit 18-month Low Mark, Other Crypto Coins Too Join Bloodbath

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