Cryptocurrency market capitalisation has plunged by more than half to roughly $1.4 trillion after the Federal Reserve (Fed) boosted interest rates by 50 basis points, causing a sell-off panic among investors.
Bitcoin (BTC) fell to a three-month low in Asian trading on Monday.
BTC has dropped to its lowest level since July 2021, with a daily low of more than 12%, and is down more than 56% from its all-time high of nearly $69,000 in November last year.
The market value of the top 500 digital assets has dropped by more than half to $1.4 trillion since a peak in November 2021.
According to CoinMarketCap data, the current cryptocurrency Market Cap is $1,406,774,855,869.
According to data provider Kaiko, Bitcoin's correlation with the Nasdaq Composite, a measure of large U.S. technology companies, has achieved new highs.
Wedbush Securities strategist Daniel Ives stated:
“This is a risk off across all asset classes including crypto.”
A drop also affected related-listed equities of bitcoin companies on US exchanges. MicroStrategy, the largest Bitcoin holding public business managed by Michael Saylor, has plummeted by 55% this year. Similarly, Coinbase, a U.S.-listed cryptocurrency exchange, has plummeted 65 percent in 2022, sliding below $100 for the first time.
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