Crypto economy’s value plunges to $1.2 trillion – lower than last July’s lows

The $1.19 trillion crypto economy is now lower in value than the July 2021 lows. Over the last week, digital currencies like Bitcoin, Ethereum, Cardano, and XRP, have shed significant value against the US dollar, as the top cryptos have lost from 50% to 80% against their all-time highs.

During the last seven days, the top 10 digital currencies are down between 4% to 15%. Bitcoin (BTC) has lost 4.6% in value this week, while Ethereum (ETH) has dropped by more than 14%.

BNB is down 9.7%, and ADA has only dropped by 0.7% this week. XRP has lost 7.4%, SOL dipped by 11.6%, and the 10th-largest Dogecoin (DOGE) has plunged by 13.6% during the past seven days.

Currently, the crypto economy is valued at $1.19 trillion as it has lost 6.1% during the last day alone. This value is lower than the lows recorded in July 2021, when the market cap tapped a low of $1.32 trillion that month. The last time the entire crypto-economy was valued this low was the first week of February 2021.

At that time on February 6, 2021, BTC was trading for $39,405, ETH exchanged hands for $1,665, and XRP traded for $0.43. Now, these coin values are lower than they were during the first week of February.

Other top coins were lower in value than they are today. For instance, Avalanche (AVAX) traded for $16.42 on February 6, 2021, while today, it is trading for $20.04.

In February 2021, Solana (SOL) was traded for $6.05, and today it is changing hands for $33.84. Terra (LUNA) was trading for $2.74, up 86% during the first week of February 2021, but today, it is worth $0.00006805 only.

Lately, the Crypto Fear and Greed Index (CFGI) shows “extreme fear” is in the air as far as crypto sentiment is concerned. At the time of writing, the CFGI indicates the “extreme fear” score is a “12” compared to a “13” day before.

Yesterday, Bitcoin’s price sank following the latest US Consumer Price Index (CPI) release, which showed that the index had unexpectedly hit 8.6%, reaching its highest level in 40 years.

Despite economists’ expectation that the CPI figure to remain flat at 8.3%, the same as April, the Labor Department’s announcement on June 10 defied that inflation is under control.

According to FT, US Treasury Secretary Yellen said fighting inflation remains a top priority for the White House. Undoubtedly, the higher-than-expected CPI data puts more pressure on the Fed to action rate increases in the near future.