Cryptocurrency prices have plunged over the last few days, with the flagship cryptocurrency Bitcoin losing nearly 25% of its value in a week and trading at $22,600 at the time of writing. Ethereum, on the other hand, lost nearly 33% of its value during the same period.
The stock market’s benchmark index, the S&P 500, is down over 9% over the same period, while gold lost around 1.35% of its value. The market crash is associated with macroeconomic factors, which include soaring inflation throughout the world and the ongoing Russian invasion of Ukraine, coupled with crypto lender Celsius Network freezing withdrawals from its platform citing “extreme market conditions.
Over the week inflation in the U.S. was reported to be at 8.6%, its highest value in 40 years. The figure prompted investors to bet on a more aggressive Federal Reserve, with talk of a 75 basis point hike coming on Wednesday.
The sell-off in crypto markets was exacerbated by crypto lender Celsius halting withdrawals from its platform citing “extreme market conditions.” The move locked in the funds of 1.7 million customers, who have been tracking Ethereum blockchain data suggesting
Celsius have moved $89 million worth of wrapped BTC and $63 million of ETH to other exchanges.
The total crypto market capitalization dropped below the $1 trillion mark over the sell-off.