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Cryptocurrency market value slumps under $1 trillion
Global Banking & Finance Review®
Company
By Elizabeth Howcroft
LONDON (Reuters) – The value of the cryptocurrency market on Monday fell below $1 trillion for the first time since January 2021, according to data site CoinMarketCap, reaching as low as $926 billion.
The global cryptocurrency market peaked at $2.9 trillion in November 2021, but it has faltered so far this year. It has lost $1 trillion in value in the last two months alone as investors ditched riskier assets in the face of high inflation and fears that interest rate raises by central banks will hamper growth.
The largest cryptocurrency, bitcoin, was down more than 10% on the day, falling to an 18-month low of $23,750. It is down by around 50% so far this year. Smaller coin ether fell over 15% to $1,210.
“As inflation proves to be an even trickier opponent to beat than expected, Bitcoin and Ether are continuing to get a severe bruising in the ring,” said Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown.
“They are prime victims of the flight away from risky assets as investors fret about spiralling consumer prices around the world.”
(Reporting by Elizabeth Howcroft; editing by Tom Wilson)
Bitcoin is the first and most well-known cryptocurrency, created in 2009. It allows for peer-to-peer transactions without the need for intermediaries like banks.
Ether is the native cryptocurrency of the Ethereum platform, which enables developers to build decentralized applications. It is used for transactions and computational services on the Ethereum network.
Market capitalisation refers to the total market value of a company's outstanding shares of stock or a cryptocurrency. It is calculated by multiplying the current price per unit by the total number of units in circulation.
Inflation is the rate at which the general level of prices for goods and services rises, leading to a decrease in purchasing power. It is often measured by the Consumer Price Index (CPI).
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