Why are crypto markets crashing?
Decimated. Ravaged. Wiped out. Whatever the adjective, one thing that's abundantly clear by now is that the cryptocurrency markets are in turmoil—with no end in sight. Since the market hit an all-time high in November, crypto has been stumbling, but, in the last week, the decline has accelerated in shocking fashion, sparking questions about the stability of so-called stablecoins, whether another long-awaited crypto winter is here, and what investors can do about it.
How much have crypto markets dropped?
Since the total value of crypto markets globally hit an all-time high in November 2021, the market has crumbled 59%. But the last week has been particularly brutal, with crypto overall plummeting from $1.18 trillion to $1.2 trillion, as of Thursday afternoon at 3 p.m. ET, according to data from CoinMarketCap. That's a decline of 33% in a single week. Of the sell-off, the damage has been widespread. Bitcoin is down by a third since May 4, now trading at around $28,000, while Ethereum's ETH token, the second largest crypto out there today by market capitalization, has dropped 35%. Altcoins like Cardano's ADA, Solana's SOL, and Polkadot's DOT are all down more than 45%. And the original meme token, Dogecoin, has plunged 40%.
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