Crypto market has lost over $1 trillion in market capitalization since November, Bitcoin hits six-month low

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Bitcoin and Ether hit their respective new all-time highs in November 2021, but things seem to have only gotten worse since then. Bitcoin and most major altcoins have sold off as crypto investors watch the outlook for U.S. interest rates rising, faster and more aggressively than most expected a few months ago. sadness. In fact, according to data from CoinMarketCap, Bitcoin’s current market cap of $665 billion (roughly Rs. 50,56,000 crore) is down from nearly $1.3 trillion (roughly Rs. 1.00 ,00,000 crore) in November 2021, while the broader crypto market poured over $1 trillion (about 70,000,000 crore) in the same period.

According to reputable wealth management firm Bespoke Investment Group (via Bloomberg), there have been larger percentage pullbacks for Bitcoin and the overall market, but the weekend crash marks the second-largest dollar drop ever. Americans for both.

The cryptocurrency rout comes as investors sold shares in tech companies on the belief that the US Federal Reserve will act to rein in loose pandemic monetary policy to fight inflation. The most recent price crash comes as the Federal Reserve is also taking small steps toward the potential launch of a US digital currency, similar to electronic cash that would be backed by the central bank. On Friday, the Fed released a long-awaited report exploring its options.

The report did not provide any conclusive answers, instead delving into the pros and cons of any decision. This matches the Fed’s slow movement on digital currency issues, even as other central banks are experimenting with their own versions.

Global stock markets posted their biggest declines in more than a year this week as fast-growing companies that fueled the rally from the depths of the coronavirus crisis suffered intense falls.

The sharp sell-off in digital assets also came a day after Russia’s central bank announced draft proposals to ban all cryptocurrency trading and mining. The proposed regulations would also block cryptocurrency investment by banks and prohibit any exchange of cryptocurrency for traditional currencies in Russia, one of the world’s largest cryptocurrency mining centers.

The central bank said in its 36-page report that the rapidly rising value of cryptocurrencies “is defined primarily by speculative demand for future growth, which creates bubbles,” adding that they “also have aspects of pyramids. financials, as their price growth is largely sustained”. by demand from new market entrants.” The announcement initially had little impact on Bitcoin, but the popular crypto asset fell more than 10% on Friday from the previous day’s high to hit its low. level since August.

Interested in cryptocurrency? We discuss all things crypto with WazirX CEO Nischal Shetty and WeekendInvesting Founder Alok Jain on Orbital, Gadgets 360 Podcast. Orbital is available on Apple Podcasts, Google Podcasts, Spotify, Amazon Music and wherever you get it. your podcasts.

Cryptocurrency is an unregulated digital currency, which is not legal tender and is subject to market risk. The information provided in the article is not intended to be and does not constitute financial advice, business advice or any other advice or recommendation of any kind offered or endorsed by NDTV. NDTV shall not be liable for any loss resulting from any investment based on any perceived recommendation, forecast or any other information contained in the article.

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