Bitcoin, the world’s largest cryptocurrency, lost $800 billion last month. The cryptocurrency, which accounts for nearly 40% of the cryptocurrency market, hit a 10-month low on Tuesday before recovering to $31,450 six days after touching $40,000.
The total crypto market value stood at $2.2 trillion on April 2, below its all-time high of $2.9 trillion in early April.
According to crypto experts, the recent drop in value was triggered by expected regulations being put in place to deal with rising inflation, which have forced investors to steer clear of high-risk investments, along with signs of weakness in stable coins.
“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 statement.
Despite Bitcoin’s fall in value, digital asset manager Coinshares said that crypto-related funds and products recorded inflows of $45 million last week, with investors taking advantage of price weakness.
The sources for this piece include an article in Reuters.