Today, the cryptocurrency market suffered a panic sell-off following new highs reported in US inflation data. Moreover, global market fears added to the vulnerabilities of cryptocurrencies.
As a result, Bitcoin‘s price fell by $24,000, dropping 14% today. This is Bitcoin’s lowest level since December 2020. Ether, the second-largest cryptocurrency, lost over 15%, hovering around $1,200. Due to the bloodbath across the crypto market, the total market capitalization of all cryptocurrencies fell below $1 trillion on Monday morning according to CoinMarket Cap.
As if that hadn't been enough, investors were also hit by another blow today when crypto lending platform Celsius announced that it was pausing all withdrawals and transfers between accounts. The 'extreme market conditions' forced the firm to take this step, it said.
The current trends show investors are staying away from risky assets because of global market conditions and inflation. The tightening monetary policy of the Fed has wreaked havoc on cryptocurrencies in particular because of its volatile nature. On top of that, the collapse of Terra (LUNA) and TerraUSD (UST) has caused investors a great deal of anxiety.
Back-to-back bad news from the crypto world has caused FUD (fear, uncertainty, and doubt) among the investors. Crypto enthusiasts took to Twitter using #cryptocrash to express their anxiety, asking when this bloodbath would end. Experts believe it might get worse.