Support 100 years of independent journalism.

  1. Chart of the Day
14 June 2022

How the cryptocurrency market has crashed

The main crypto index shows that prices are 72 per cent below their peak.

By Nicu Calcea

Cryptocurrency trading took another hit today, with prices continuing to sink as the buying spree that took prices to record levels goes into reverse.

The S&P Cryptocurrency Broad Digital Market Index, which tracks the performance of many crypto assets, showed that prices were 72 per cent lower on average than at their peak in November 2021. Ethereum has lost 74 per cent of its value since then, while Bitcoin is 66 per cent down.

 

The total cryptocurrency market has collapsed to under $1trn for the first time since January 2021, according to estimates by CoinMarketCap.

Celsius Network, one of the largest cryptocurrency lending platforms, has paused transactions on its platform “due to extreme market conditions”, while Binance, a major crypto exchange, temporarily paused Bitcoin withdrawals on Monday, citing technical issues. Several crypto businesses, including BlockFi, Crypto.com, Gemini and Coinbase, have announced layoffs or hiring freezes in recent weeks.

The crypto crash has coincided with a crash of US tech stocks, with the S&P 500 index dropping nearly 4 per cent on Monday.

Sign up for The New Statesman’s newsletters Tick the boxes of the newsletters you would like to receive. A weekly newsletter helping you fit together the pieces of the global economic slowdown. Quick and essential guide to domestic and global politics from the New Statesman's politics team. The New Statesman’s global affairs newsletter, every Monday and Friday. The best of the New Statesman, delivered to your inbox every weekday morning. The New Statesman’s weekly environment email on the politics, business and culture of the climate and nature crises - in your inbox every Thursday. Our weekly culture newsletter – from books and art to pop culture and memes – sent every Friday. A weekly round-up of some of the best articles featured in the most recent issue of the New Statesman, sent each Saturday. A newsletter showcasing the finest writing from the ideas section and the NS archive, covering political ideas, philosophy, criticism and intellectual history - sent every Wednesday. Sign up to receive information regarding NS events, subscription offers & product updates.

[See also: What the Terra crash means for the future of crypto]

Content from our partners
“I learn something new on every trip"
How data can help revive our high streets in the age of online shopping
Why digital inclusion is a vital piece of levelling up
Topics in this article: ,