The total value of the cryptocurrency fell below $1 trillion on Monday, due to the fall in the price of bitcoin and other crypto assets. The fall marked a new low, wiping out more than $2 trillion in value from the cryptocurrency since its peak in November 2021.

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According to crypto data website Coinmarketcap, the market capitalization (total value) of cryptocurrencies reached a peak of $2,977 billion on November 10, which is just $23 billion down from $3 trillion. Since then, the value of the cryptocurrency has fallen in phases, with little recovery, to less than $977 billion, a drop of more than $2 trillion since the peak.

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The last trillion worth is lost in just 60 days. The total cryptocurrency market cap stood at over $2 trillion on April 13.

The recent decline has been dramatic. Bitcoin – the largest crypto currency – has lost over 10% in the past 24 hours, and is now trading below $24,000. It was as high as $67,000 in November.

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Investors in cryptocurrencies are facing several drivers of negative sentiment. Increasingly, cryptocurrencies have become correlated with traditional stock markets – particularly the NASDAQ – rather than being an alternative asset or hedge.

Interest rate hikes by the US Federal Reserve in an attempt to curb inflation have generally led to a fall in prices in the markets. Combine this with the Russian invasion of Ukraine, which has made investors more risk-averse, and 2022 has been a rough year for crypto.

Antoine Trenchev, co-founder and managing partner of crypto lender Nexo, told Bloomberg: “Crypto remains at the mercy of the Fed and is stuck in a fun dance with the Nasdaq and other riskier assets.”

He added: “We are hearing forecasts for bitcoin in the mid-teens and single-digit thousands which tells you the type of macro environment crypto is facing for the first time – and the level of fear.”

The effect has been dramatic. One coin, the Luna, has been effectively worthless in recent weeks, falling from $87 to zero in May. Crypto exchange, Coinbase reported a net loss of $430 million in the first quarter and a drop of over two million active users.

Cryptocurrency lending platform Celsius said on Monday that it is stopping all withdrawals and transfers.

The company said in a memo: “Due to extreme market conditions, today we are announcing that Celsius is halting all withdrawals, swaps, and transfers between accounts. We are taking this action today to ensure that Celsius is maintained over time. to be brought into a better state of honour, the obligation of its return.”

Celsius has become one of the leaders in crypto lending, with the company saying in a recent post that it has more than 1.5 million users with over $17 billion in total assets.