Over the weekend, the value of the entire crypto market has fallen. The global market cap currently amounts to $1.03 trillion, which means there was a 7.5% drop in just the last 24 hours.
In the past week, the value of each of the top 20 cryptos by market cap has shrunk by double-digit percentages. For instance, Bitcoin suffered an 18% decrease, now amounting to $25,513, which is the lowest its been in the past 12 months. Ethereum is down 28%, Cardano 24%, Binance Coin 22%, etc.
Since the first week of May, the world of cryptocurrency has been experiencing what is dubbed the “Crypto Winter”. The tech stock market took a beating, and the Terra crypto ecosystem went down, contributing to the ongoing decline of the crypto market.
Another contributing factor is the 8.6% rise in the prices of consumer goods since May 2021. This is the highest year-by-year inflation rate since 1981. While Bitcoin was pitched as a “hedge against inflation”, that is currently not the case, and crypto and tech stocks are dropping simultaneously.