The global crypto market has tanked below one trillion dollars (£820 billion) for the first time since January 2021.
According to data from CoinMarketCap, Bitcoin is down 13 percent over the past 24 hours and Ethereum is down 16 percent.
The trend marks the twelfth consecutive week – apart from some minor respite in week ten – of price losses for Bitcoin, something the market has never seen before.
Falling from nearly £40,000 in March, the top cryptocurrency now has a valuation just shy of £20,000.
Ethereum is trading at £970, a 75 percent decrease from its all-time high of £4,020.
Whilst May initially showed signs of a flattening decline, concerns over fresh US inflation data have reignited market fears.
The United States now faces inflation of 8.6 percent, surpassing expectations that it would decline by 0.1 of a percent from April’s 8.3 percent.
In the UK, the situation is even worse at 9 percent, and markets around the world are feeling the repercussions. Over the past five days, Japan’s Nikkei 225 has fallen by 3.5 percent, India’s Sensex by 4 percent, and the S&P 500 by 5.5 percent.
According to price chart analysis, Bitcoin was holding out at the £24,000 mark, but the fall below that level means a key price level to look out for is the crypto’s 2017 high of £16,000.
Within the web3 space, the crypto lending service Celsius paused withdrawals on 13 June in response to “extreme market conditions”. Such a decision has led to community speculation that the company lacks the liquidity to pay out its depositors.
The company announced it has also paused its swap and transfer products. It has not provided a timeline for resuming withdrawals.
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