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.