Crypto assets shed nearly $ 800 billion in market value over the past month, touching $ 1.4 trillion on Tuesday, according to CoinMarketCap data, as the end of a simple monetary policy diminishes risk asset risk.
Bitcoin, which makes up about 40 percent of the crypto market, hit a 10-month low earlier on Tuesday, before returning to $ 31,450, just six days after touching $ 40,000. It was more than 54pc less than Nov. 10 all-time high of $ 69,000.
Digital asset prices have declined, reflecting declining interest-free business shares due to fears of rising global interest rates to curb inflation for decades.
The tech-heavy Nasdaq was down 28pc from its November 2021 high record.
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The total crypto market price was $ 2.2tr on April 2, well above its total $ 2.9tr in early November, according to CoinMarketCap.
“Bitcoin remains very much in line with broader economic conditions, indicating that the previous approach could, unfortunately, be rocky, at least for now,” blockchain data provider Glassnode said in an article.
Signs of a weakness in stablecoins, usually a secure cryptocurrency, are pushing investors forward.
TerraUSD, the fourth largest stablecoin in the world, lost a third of its value on Tuesday as it lost its peg in the dollar.
Although the value of bitcoin is declining, currencies and commodities linked to $ 45 million last week as investors took advantage of the price weakness, according to digital asset manager Coinshares in a statement released Monday.
“A lot of cash flow has raised some of these cryptocurrencies,” said Sebastien Galy, a senior strategist at Nordea Asset Management.
He expects crypto, which is associated with high growth, to be under pressure as many major banks tighten monetary policy.
