The crypto market continues to feel the effects of last month’s crash as Bitcoin drops further than ever before.
Bitcoin is selling at $24,677.65 as of this writing and down by 21.33% in the past seven days with a market cap of $472.55 billion.
The fear of a recession echoes across the entire crypto market as it could sway investors from putting their money into cryptocurrency, especially with Bitcoin at its lowest in three years.
The crypto market has been feeling the effects of regulation and uncertainty in recent weeks, with many coins taking sharp dives, especially alternative coins.
The price of Ethereum has seen an interesting twist in the last few days. The coin reached its highest point ever last year, only to drop 33% in the last 7 days, selling at $1,296.51, less than half its peak of over $4,900. Other coins suffered too with double-digit losses.
The crypto market lost more than $100 billion over the weekend, following United States Treasury Secretary Janet Yellen’s warning about cryptocurrencies.
The Bitcoin bull’s market cap stands at $472.55 billion, giving them more power to control other crypto coins.
Bitcoin’s steady decline over the last week has led to it losing its $32,000 standing, losing its value.
“Crypto appears to be losing the ideal opportunity to illustrate its forgotten function as a hedge against inflation,” said Rich Blake of cryptocurrency startup Uphold.
The recent rise in inflation rates has caused quite a stir, with Bitcoin continuing its plunge.
Some people might say that the recent drop in the stock market is a coincidence, but it’s not. The S&P 500 and Dow Jones Industrial Average both dipped below 2.5% this, while Nasdaq Composite also fell by 3.5%. The connection between crypto markets with traditional economic indices isn’t new.
Janet Yellen has weighed in on the potential for cryptocurrency to be put into 401k plans, cautioning against it due to security risks. The U.S Federal Reserve is expected next week to hold a two-day meeting where they may increase interest rates yet again.