The market capitalization of cryptocurrencies has reportedly plunged below USD 1 trillion amidst challenging market conditions for the first time since January 2021. The global crypto market is currently worth USD 983.72 billion, down by 11.23% from the previous day, sources claimed.
Over the last 24 hours, the overall cryptocurrency market volume has surged by 44.78% to USD 123.04 billion while the entire volume in the decentralized finance (DeFi) accounted for USD 9.24 billion, representing a 7.51% share of the total crypto space. The volume of all stable coins is now USD 110.01 billion, accounting for 89.41% of the total 24-hour volume of the crypto market.
Bitcoin, the most popular cryptocurrency, was down over 9%, plummeting to an 18-month low of USD 23,950. Ether dropped as much as 9% to USD 1,342.32 while Cardano, Dogecoin, Polkadot, and Avalanche were among the other cryptocurrency coins in the red.
Meanwhile, crypto markets, such as equities and other financial assets, have been under strain as interest rates and inflation have risen. The crypto industry was further shocked by the collapse of the alleged stable coin TerraUSD and its sister currency Luna in May.
Bitcoin slumped even more after the Celsius Network suspended the withdrawals, plunging more than 7.8% to USD 24,502.
The company asserted in its blog post that it had restricted withdrawals and account transfers to stabilize liquidity and operations while efforts are taken to preserve and protect assets. Besides, this measure has been undertaken right now to put Celsius in a better position so that it can meet its withdrawal responsibilities over time.
Notably, traders are increasing their bets on a more aggressive tightening of the Federal Reserves after data released on Friday showed US inflation rose to a 40-year high in May, further triggering a selloff in risk assets such as crypto and stocks.