The cryptocurrency market went through a major selloff on Monday morning with its overall market cap dipping below $1 trillion for the first time in over a year after major crypto lending platform Celsius announced it had suspended all withdrawals and transfer due to extreme market conditions.
According to market tracker coinmarketcap.com, the said market cap stood at $970 billion on June 13.
Bitcoin was around $24,426, almost 12% down for the day, while Ethereum was below $1,240, more than 16% down. The prices of bitcoin and other crypto-assets are down 20-40% in the past seven days.
The crypto market hit new peaks in 2021 amid a historic bull run. It breached $3 trillion in market cap last November after surpassing $1 trillion in February.
The sustained decline in crypto this year comes on the back of heightened market participants’ concern and worries amid record inflation in the US and the expectation of more interest rate hikes by the Fed to combat this.
Both Bitcoin and Ethereum fell by close 8-9% and have corrected by almost 50% from their all-time highs.
