The value of BTC, ETH, and all of the other major cryptocurrencies continued to decline over the weekend, wiping all the week's gains.
For the first time since February 2021, when it hit $998 billion, the total value of all cryptocurrencies on the worldwide market fell below $1 trillion.
The immediate cause of the crypto price reduction appears to be a large sell-off by investors in reaction to rising inflation fears. Investors' continued avoidance of risky assets is evident not only in the bond markets but also in the stock markets.
It wasn't only about Bitcoin and Ethereum. Every single one of the top 20 currencies by market capitalization has dropped by double-digit percentages in the previous week.
Some industry experts feel that rising food, gas, and energy prices are putting great pressure on the crypto market. This idea is based on the fact that during the previous 24 hours, both Bitcoin and Ether have seen double-digit losses.
The crypto market has been volatile all year after a huge bull run in 2020 and 2021, but the current Crypto Winter began in May when major currencies fell along with the stock market.
Stocks in the technology sector and cryptocurrency have recently declined. Consumer prices jumped 8.6% year over year in May 2022 compared to May 2021, the greatest rate of year-over-year inflation since 1981, exacerbating the declining trend.
Another explanation for the drop might be because most investors are concerned that if inflation continues to rise, the US Federal Reserve would be forced to tighten controls by raising interest rates faster than projected. One of the reasons for the decline is because of this. At the time of writing, the crypto market was valued $998 billion, down 7.35 percent in the previous 24 hours.