The bear market in bitcoin is dragging the market cap of the total crypto space back toward $2 trillion, tumbling from its peak of $3 trillion in November | Currency News | Financial and Business News

Mastercard and BNY Mellon Redeemed Bitcoin Thursday, Supporting XRP, Ether and Other Cryptocurrencies

The bear market in bitcoin, ether and other altcoins pushed the total cryptocurrency market cap to nearly $2 trillion Thursday, according to data from CoinMarketCap.

This is a significant drop from its recent peak of around $3 trillion in mid-November, when Bitcoin peaked at around $69,000. Since then, the world’s most popular cryptocurrency has fallen by 38%, with its sell-off accelerating this week after minutes from the Federal Reserve hinted at the possibility of a rate hike sooner than expected.

Wednesday’s bitcoin selloff wiped out nearly $60 billion of market capitalization, with the cryptocurrency losing a total of $500 billion in value since its November peak. Meanwhile, Ether has lost about $50 billion of its market value during this week’s heavy sell-off, and has seen its total market value drop by nearly $170 billion since its peak.

Some investors are expecting a short-term cryptocurrency sell-off despite various support levels being broken. Crypto bull Mike Novogratz expects Bitcoin to find a floor around $38,000 with institutional buy-in, which is an additional downside around 12% from current levels.

But bitcoin and ether are not the only digital currencies driving the decline in the overall market capitalization of cryptocurrencies. Over 25 cryptocurrencies with a market capitalization of at least $1 billion have fallen 10% or more of their market capitalization over the past week.

The soaring Solana stock is down 9% over the past day and is down 42% from its record high. Meanwhile, Cardano is about 60% below its high, while Polkadot is down about 51% from its peak. If investors maintain their risk-taking stance towards speculative assets due to the Fed’s tightening, the cryptocurrency’s decline may continue.

Cryptocurrency market capitalization