Bitcoin Falls As Crypto Dive Wipes $1,000,000 Of Value

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Bitcoin fell 10% in trading on Monday, capping losses that totaled 20% over the past week and has erased $1 trillion from the total crypto market value since November.

On Monday morning, bitcoin was trading around 7.5% lower than Friday. The price of one bitcoin was just over $34,000, down more than 45% from early November, when it hit an all-time high of $67,582.

Ethereum, which around the same time was trading at a high of over $4,800 per coin, had fallen to $2,243 on Monday. Its value has fallen about 30% in the past week.

Bitcoin alone has lost over $600 billion in market value. The crypto market as a whole suffered losses exceeding $1 trillion – the second largest drop in the brief history of digital currencies.

Crypto-adjacent stocks are also affected by the market crash. Coinbase, the digital trading app, was down more than 9% in early morning activity on Wall Street.

In early November, Coinbase hit a record high of $357 per share. On Monday, the share price was less than half that at $174 – the lowest since it began public trading in the spring of last year.

The cryptocurrency market has lost over $1 trillion in overall value over the past two months, dragging down crypto-focused stocks like Coinbase.Getty Images

Other crypto-focused stocks, such as digital coin mining firms Riot Blockchain and Marathon Digital, also suffered losses.

Shares of Riot Blockchain fell more than 10% after the opening bell while Marathon Digital’s share price fell more than 8%.

The cryptocurrency’s sell-off mirrors that of other assets like stocks as investors brace for the Federal Reserve’s withdrawal of market stimulus.

As bitcoin’s value plunged, the tech-heavy Nasdaq Composite entered correction territory this week as the expected withdrawal of pandemic-era Fed support and rising inflation rattled American markets.

“Crypto is reacting to the same kind of dynamic that is weighing on risky assets globally,” Stéphane Ouellette, CEO of FRNT Financial, told Economic Times.

“Unfortunately for some of the mature projects like BTC, there is so much cross-correlation within the crypto asset class that it is almost certain to fall, at least temporarily, into a broader market valuation contraction. alt-corners.”

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