Crypto assets shed $800 billion in market value in a month

　　div classBodysc17zpet90 cdBBJodivpBy Medha Singhp

　　pReuters – Crypto assets bled nearly 800 billion in market value over the past month, touching a low of 1.4 trillion on Tuesday, according to data site CoinMarketCap, as the end of easy monetary policy diminishes appetite for risk assets.pdivdivdiv classBodysc17zpet90 cdBBJodiv

　　pBitcoin, which makes up for nearly 40 of the crypto market, hit a 10month low earlier on Tuesday, before rebounding to 31,450, just six days after touching 40,000. It was more than 54 below its Nov. 10 alltime high of 69,000.p

　　pDigital asset prices have slumped, mirroring a plunge in equities on fears of aggressive interest rate hikes across the globe to stave off decadeshigh inflation. The techheavy Nasdaq was down 28 from its November 2021 record high.p

　　pTotal crypto market value was at 2.2 trillion on April 2, well off of its alltime peak of 2.9 trillion in early November, as per CoinMarketCap. p

　　p“Bitcoin remains highly correlated to the broader economic conditions, which suggest the road ahead may unfortunately be a rocky one, at least for the time being,” blockchain data provider Glassnode said in a note.p

　　pSigns of weakness in stablecoins, typically a safer crypto currency, further spooked investors. TerraUSD, the worlds fourthlargest stablecoin, lost a third of its value on Tuesday as it lost its peg to the dollar.p

　　pDespite bitcoins price slump, funds and products linked to it posted inflows of 45 million last week as investors took advantage of price weakness, according to digital asset manager Coinshares in a report released on Monday. p

　　p“Enormous amount of liquidity that has inflated some of these cryptocurrencies,” said Sebastien Galy, senior macro strategist at Nordea Asset Management. He expects crypto, also correlated to highgrowth stocks, to come under pressure as several central banks tighten their monetary policy.p

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　　pp Reporting by Medha Singh and Sruthi Shankar in Bengaluru Editing by Shinjini Gangulip

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