The cryptocurrency market suffered one of its most dramatic sell-offs in years this week as prices of major cryptocurrencies fell by as much as 35% week after week as fears of a broad economic recession intensified.
On Saturday, the total global market capitalization of cryptocurrencies fell below $ 850 billion due to the collapse of the major tokens.
Ethereum is trading in half from a month ago, falling below the $ 1,000 price barrier it has traded above since January 2021. This figure has been down about 80% since it hit the high. historic in November last year. Bitcoin, the largest cryptocurrency by market capitalization, similarly eclipsed an important price barrier on Saturday, dropping below $ 20,000 after a weeks-long decline caused the currency to plummet again and again.
While investors in the best coins are concerned, smaller ecosystems are facing big successes and supporters are concerned about the survival of tokens and ecosystems that are still springing up on the fringes of a bear market. There are still around 44 tokens with market capitalizations north of $ 1 billion according to CoinMarketCap.
The latest cryptocurrency crash occurs when investors fear macroeconomic conditions and the Federal Reserve’s efforts to curb inflation. Cryptocurrency investors have also seen a number of core protocols and services threatened by rapid asset depreciation with some concerns that the interdependence of these various services could cause cascading crashes.