The crypto market has already entered a gloomy phase. From its all-time high (ATH) of $3 trillion, it has lost more than half of its volume. At the time of writing, the market capitalization was $1.25 trillion. Not only crypto world facing the winter season the traditional market also dipping into the bloodbath.
Winter On Crypto market
Since the end of March, Bitcoin (BTC) has been falling, it was closer to $50,000 at the time, but it collapsed and quickly lost value. The cryptocurrency quickly sank below $30,000 and its situation worsened in the following days. In 24 hours BTC fell to below $29,000.
Ethereum is the second-largest cryptocurrency and has lost over 59% of its ATH. Currently it is trading at $1,972.75 USD With a trading volume of $12,994,534,724 USD. Ethereum is down 3.24 % in the last 24 hours; its total market cap is $238,438,047,970 USD.
Terra (LUNA) was formerly one of the top ten most valuable cryptocurrencies on the market, with a peak of $119.5 as its all-time high. However, by May 11, the asset had lost nearly all of its value, dropping from $75 to $0.000005 in just five days. It surged by more than 1000% on May 14 after experiencing unexpectedly large volatility and now trades at $0.0001093.
Also, the most popular meme coins have lost more than 85% of their ATH value because of the recent market crash. Dogecoin, the most popular meme currency, has dropped by over 88% from its ATH. Shiba Inu has also lost about 86% of its ATH and shows no signs of improvement.
The popular Fear and Greed Index has reverted to an adverse high-risk zone. This is the lowest the index has been since late January. The Fear & Greed Index has fallen to “Extreme Fear.” The Index fell from 100 points to 13 points.
Bitcoin Fear and Greed Index is 13. Extreme Fear— Bitcoin Fear and Greed Index (@BitcoinFear) May 21, 2022
Current price: $29,255 pic.twitter.com/cra4eg1RHl
Investors worried about the impact of rising inflation on earnings and the impact of interest rate hikes on economic growth. For the first time since the 2020 Wall Street crash caused by the coronavirus pandemic, a close of 20% or more below that level will certify the S&P 500 is in a bear market. The Nasdaq, which is dominated by technology, is already in a bear market, down 30.7% from its all-time high in November 2021.