The cryptocurrency market took a massive hit on Monday as major digital coins crashed, wiping $130 billion off its value in a span of 24 hours.
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Bitcoin plunged almost 9% to its lowest in six months. The largest cryptocurrency was trading at $33,058 – its lowest since July 23, taking losses from its all-time high of $69,000 hit in November. Ether dropped by 7% to $2,239.08, its lowest level since late July, while Binance Coin was down 12%, according to Coin Metrics.
The top cryptocurrency and Ether are now 40% and 51% from their respective all-time highs, according to CNBC.
The movements in cryptocurrencies follow similar trends in the stock market, as major platers' shares have continued to fall since the beginning of the year. Last week was Wall Street's worst since March 2020.
CNBC noted that investors have been "selling risk assets like technology stocks as they prepare for tighter monetary policy" by the US Federal Reserve, including the potential impact of further regulation on the cryptocurrency market.
Investors are also grappling with rising inflation, something Bitcoin proponents have long suggested the digital coin is a hedge against, but that theory has not held. "There are more short-term investors in the crypto market valuing bitcoin like a tech stock than ever before. Analysts say there's concern a more hawkish Fed could take the wind out of the crypto market's sails," the report said.
Current trading data shows that over $1 trillion has been wiped from the aggregate crypto market's value since November.
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