suffered another plunge on Monday after days of increased volatility in the cryptocurrency market.
Many other crypto assets have crashed when Bitcoin struggling to keep the momentum going.
Bitcoin keeps slipping
Bitcoin bleeding continues.
The top crypto asset posted a 10-month low on Monday afternoon, trading below $33,000 for the first time since July 2021. Briefly reaching around $32,750, bitcoin was up just over $33,000 at the time of writing, trading down just over 50% from November all-time high 2021
The recent plunge follows a rocky few days in the crypto and global markets. Bitcoin is down 14.7% over the past week, losing 15.9% of its value, according to data from CoinGecko, and many other lower-capped assets have fallen more sharply.
Although the entire crypto market since exceeding a market capitalization Having taken a hit from $3 trillion in November, May has gotten off to a particularly bleak start for crypto’s notoriously staunch HODLers.
This is partly due to an uncertain macroeconomic environment affecting all asset classes. Tech stocks like Netflix (NASDAQ:) and Meta Platforms (NASDAQ:) extended losses last week as the Bank of England issued an ominous warning of a possible recession on the horizon.
Arguably the biggest catalyst behind the recent volatility, the US Federal Reserve’s move to raise interest rates, beginning with an add-on last Wednesday, has marked a major shift in market conditions as investors face a challenge in an environment navigating rising interest rates rather than the money-printing era that has helped crypto and other assets soar in 2021.
Amid the volatile climate, crypto market sentiment has been at rock bottom for several weeks. The Crypto Fear & Greed indexa popular indicator measuring crypto trader confidence, is currently at “extreme fear.”
The vast majority of crypto assets are sharply down year-to-date, a fact made worse by the Fed’s planned tapering and rate hikes set to follow later this year.
In addition to Bitcoin and Ethereum, some of the biggest breakout stars of 2021 are down 50% or more from their all-time highs. , for example, is trading 72.5% below its high of $71.66. has lost nearly half of its market value in a month amid UST stability issues and is 84.1% below the peak it hit around this time last year.
After today’s plunge, the global market cap is for cryptocurrencies has fallen to around $1.58 trillion, with Bitcoin’s $627 billion accounting for just under 40% of that total.
Source: Crypto News Deutsch