The global crypto market value has crashed by $ 1.6 trillion since the November high

cryptocurrencies have lost $ 1.6 trillion in market value since they reached an all -time high seven months ago, since interest rate increases caused investors to flee from the most risky corners of the global financial markets.

The market value of the 500 most important digital assets has fallen by 50 percent to $ 1.6 trillion in November 2021, as CryptoMpare data showed by the Financial Times. Bitcoin, the largest digital token in the world, has also lost half of its value during this period.

The crypto slump comes out as investors get out of speculative financial investments after a wave of interest rate increases by the global central banks has led to unrest in the markets. Other risky assets such as stocks of loss-making companies and junk bonds are also under pressure, but the cryptoma markets have suffered a particularly strong blow.

"This is a risk for all investment classes, including crypto," said Daniel Ives, Stratege at Wedbush Securities, who added that there was "nowhere to hide".

The cryptom market flourished when the central banks pressed the interest rates at the height of the Coronavirus crisis on record lows and sent traders on the hunt for assets with high returns. However, a large sale of the global government bond markets this year has raised the yields and thus increased the potential returns that investors can achieve out of high -level debt.

Bitcoin has been traded at the lowest level since July 2021, but the losses on the wider cryptom market are even greater. An FT Wilshire measuring device that follows the five most important coins without Bitcoin has fallen by almost 70 percent of its latest high. Once quickly growing coins such as Solana, which were invoiced as an alternative to the Ethereum network, quickly lost value.

listed shares of crypto -exposed companies have also broken in. Microstrategy, which is led by crypto supporter Michael Saylor, has so far fallen by 55 percent this year. Meanwhile, Coinbase fell by 65 percent in 2022 and fell under $ 100 last April on Monday since the stock exchange in New York.

Bitcoin mining companies such as Bitfarms and Marathon Digital Holdings who use high-performance computers to solve puzzles for which they are compensated in digital tokens have also fallen strongly.

The sweater also underlines how closely the performance of Bitcoin and other cryptocurrencies is associated with the US stock market. The correlation between Bitcoin and the Nasdaq Composite, a measure that is aimed at America's large technology companies, has reached record heights according to data provider Kaiko.

"Some investors play crypto like protection against inflation, but like the Siamese twin of Nasdaq," said Ives.