Cryptocurrency is having a bad day as the market value of the digital assets fell below $1 trillion on Monday.
This is the first time since January 2021 that cryptocurrency has reached as low as $926 billion according to data site CoinMarketCap.
Bitcoin, the largest cryptocurrency, was down more than 10% on the day, falling to an 18-month low of $23,750 (£19,475). It is down by around 50% so far this year.
The global cryptocurrency market peaked at $2.9 trillion in November 2021, but has been seeing a steady downturn this year.
In the last two months alone, investors have ditched riskier assets in the face of high inflation and fears that interest rate raises by central banks will hamper growth.
‘The next few days surely will test digital assets if a faster pace of tightening and more aggressive rate hikes are announced,’ said Rich Blake, financial consultant at Uphold.
‘For the moment, extreme market conditions and fed policy updates are exacerbating the consequences for crypto assets,’
Just last month, more than $200 billion was wiped off the cryptocurrency market in a single day, sending investors into a panic.
Ethereum, the world’s second largest digital currency plummeted by 20% in the space of 24 hours. Currently, Ethereum has fallen over 15% to $1,210.
Experts are predicting a ‘crypto winter’, much like the period between early 2018 and mid-2020 when prices went down and stayed down.