The Wall Street Journal (WSJ) reported Friday (May 13) that the market capitalization of cryptocurrencies has lost more than $1 trillion in just six months as investors sell cryptocurrencies amid growing concerns about risky assets.
Bitcoin and Ethereum reached record highs of $67,802 and $4,800, respectively, last November, but by May 13, 2022, Bitcoin and Ethereum had fallen 58. % and 60 %, respectively, from their highs. This has also affected the crypto market which has lost $1 trillion in value over the last six months.
The market capitalization of cryptocurrencies has dropped by about half from their previous highs. As of May 13, 2022, the market capitalization of cryptocurrencies was around $1.2 trillion.
Cryptocurrencies hit all-time highs last year after Tesla invested $1.5 billion worth of Bitcoins. And Coinbase, the largest crypto trading platform in the US, was listed on the New York Stock Exchange.
In addition, investors are flocking to buy various crypto coins, including Bitcoin, to hedge against inflation risks as well.
Recently, however, the price of TerraUSD (UST), a stablecoin issued by South Korea’s Terra, has plummeted, dragging the entire crypto market down with it.