Cryptocurrency market cap drops below $1 trillion as bitcoin loses another 15% in value

Stock image of Bitcoin and US Dollars

Cryptocurrency market capitalization has fallen below $1 trillion for the first time since early 2021 - when the market breached the same barrier.

This comes amid the weak global cues that are taking a toll on all financial assets. Last night, S&P 500 lost 3.8% while Dow Jones was down 2.8%. Things get worst when we move to the cryptocurrency world as bitcoin plunged over 15% in last 24 hours while Ethereum is down to $1,200 for the first time since early 2021. Other top coins like Solana, Binance Coin, Cardano and Ripple also posted double digit losses. This has resulted in the market capitalization of cryptocurrencies dropping below $1 trillion. At the time of writing, the total market capitalization sits at $929 billion, down from $1.2 trillion last week. Furthermore, the cryptocurrency market cap has reduced by more than half since late last year when it peaked at $2.7 trillion.

A chart showing Cryptocurrency market cap

Global markets have been spiraling downwards since last week with fears of rising inflation, coronavirus, and the conflict in Ukraine. The Crypto fear and greed index now sits at 8, down from 15 last week, indicating extreme fear in the market.

Amid the fear and the drop in prices, Celsius Network has announced that it is freezing withdrawals to "to stabilise liquidity and operations":

Due to extreme market conditions, today we are announcing that Celsius is pausing all withdrawals, Swap, and transfers between accounts. We are taking this action today to put Celsius in a better position to honor, over time, its withdrawal obligations.

One silver lining to this crash is the fact that investors are willing to ride the wave and are even "buying the dip". According to stats posted by CoinMarketCap, the last 24 hours saw a 57% increase in the market volume bringing it to $154.6 Billion.

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