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Tuesday, October 4, 2022

Crypto market cap dives below $1T, lowest in 17 months

EconomyCrypto market cap dives below $1T, lowest in 17 months

World (The Times Groupe)- Cryptocurrency markets fell below $1 trillion on Monday for the first time in 17 months, as record-high inflation around the world and the Federal Reserve’s hawkish stance persist as risks for investors.

Bitcoin’s value plummeted to $925 billion at 0505GMT. Despite a subsequent rebound, the value of digital assets fell to $998 billion at 0805GMT, according to CoinMarketCap.

The cryptocurrency market has seen its total capitalization fall below $1 trillion for the first time since January 2021.

Before 0830GMT, Bitcoin, the world’s largest cryptocurrency by market capitalization, fell as low as $24,685.36. Ether, the world’s largest altcoin, fell to $1,266.28. They both fell more than 10% for the day.

Bitcoin lost over 20% of its value during the past week, while Ethereum lost about 33%.

As a result of record-high inflation in the world and the Fed’s aggressive interest rate moves, crypto investors have adopted a risk-averse stance.

Having raised rates by 25 and 50 basis points in March and May, the Fed is widely expected to hike rates again by 50 basis points in each of its next two meetings on Wednesday and in July.

Recent Fed officials have also suggested that the central bank may hike rates 75 basis points in September to lower inflation to its lowest level in more than 40 years.

In May, US consumer inflation rose 8.6% compared to the same month a year ago, recording its highest level since December 1981.

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