Technology

Global finance wobbles, virtual currency market evaporates 800 billion USD


According to data from CoinMarketCap, over the past month, crypto assets have lost $800 billion, bringing the total capitalization down to just $1.4 trillion as of May 10.

On the same day, Bitcoin, which accounts for nearly 40% of the virtual currency market capitalization, hit its lowest level since 10 months ago, before bouncing back to $31,450. Just 6 days ago, Bitcoin was still worth $40,000. Since its peak of $69,000 in November 2021, the coin has lost 54% of its value.

The drop in digital asset values ​​reflects a stock market plunge in response to rising interest rates amid a decade-high inflation. The Nasdaq technology index is down 28% from a record high hit last November.

As of April 2, the virtual currency market has a total capitalization of $2.2 trillion, lower than the peak of 2.9 trillion.

“Bitcoin remains closely linked to overall economic market conditions, suggesting that the road ahead may be rocky, at least for now,” the data firm said in a report. Glassnode blockchain.

Signs of weakening of stable-coins, which are considered safer than virtual currencies, further worried investors. TerraUSD (UST), the world’s 4th largest stablecoin, just lost a third of its value on May 10.

According to data from crypto asset management firm Coinshares, as the price of Bitcoin fell, funds and related products still received inflows totaling $45 million last week as investors. try to catch the bottom.

“The sheer volume of liquidity has inflated a number of cryptocurrencies,” said Sebastien Galy, senior macro strategist at Nordea Asset Management. He also predicts cryptocurrencies, similar to high-growth stocks, will come under pressure as central banks tighten monetary policy.

Vinh Ngo (According to Reuters)

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