The capitalization of the global cryptocurrency market fell to $1.7 trillion after a drop that affected bitcoin and the rest of the market.
Bitcoin opened the weekend with another dramatic plunge after Thursday’s market crash. The number one cryptocurrency has lost 7.6% in the past 24 hours and briefly tested $34,000 earlier this morning. It is currently trading at around $35,600, down around 48% from its all-time high. Bitcoin last reached $34,000 in July 2021.
Many other crypto assets were hit harder during the crash. Ethereum briefly dipped below $2,350 after losing 11.1%. Solana fell below $100 for the first time since August last year, while other Layer 1 coins like Terra and Avalanche also fell (losing 12.6% respectively). and 15.2%).
This latest dip comes after the market fell in tandem with traditional markets early on Friday. Big tech stocks like Netflix and Amazon ended the week particularly badly; Netflix slumped more than 20% on Friday after revealing rivals were chipping away at its video streaming market share, its worst day since 2012. Amazon fell 5.95% to record its worst week since December 2018. The Nasdaq Composite, Dow Jones Industrial Average and S&P 500 all slipped on Friday.
The start of 2022 has been difficult for the crypto and financial markets. The recent slumps have been largely blamed on the Federal Reserve after it announced it was planning three interest rate hikes this year. Under such conditions, risky assets tend to suffer as the cost of borrowing money becomes more expensive. Other factors such as the Omicron variant and a potential Russian war also raised investor fears.
When it comes to crypto, prices have been sliding across the market since November. While small-cap coins have occasionally rallied in recent weeks, major assets like bitcoin and ethereum have largely struggled to regain bullish momentum since hitting highs of $69,000 and $4,800. November 10. At the time, the global cryptocurrency market was over $3 trillion. Today it is closer to $1.7 trillion, down about 43%.