Cryptocurrencies continued their losing streak that began last December, with market losses surpassing $271 billion in the first week of the new year. These losses come after the minutes from the latest meeting of the U.S. Federal Reserve indicated a shift towards a more rigorous policy and expectations for an earlier interest rate hike, which dampened investor appetite for riskier assets. Cryptocurrencies plummeted significantly with the rising cost of borrowing and central banks moving towards raising interest rates. Bitcoin had reached a record peak of $69,000 during trading in November.
In terms of trading, during the first week of 2022, the market capitalization of cryptocurrencies fell by 12%, losing approximately $271.8 billion in value after dropping from $2,236.6 billion at the beginning of the year to $1,964.8 billion in today's trading.
As for Bitcoin, it witnessed a decline of 10.3%, losing about $4,753 as its price dropped from $46,147 at the start of last week’s trading to around $41,394 today. Its total market value also decreased by 10%, incurring losses of $87.5 billion as its market capitalization fell from $874.4 billion to approximately $786.9 billion today.
Ethereum recorded losses of 15.2% during the last week of trading, losing around $567 as its price declined from $3,730 to about $3,163. Its total market value dropped by 14.7%, incurring losses of about $65.2 billion after decreasing from $444.3 billion to approximately $379.1 billion.
While Tether, which ranked third among the largest cryptocurrencies by market capitalization, remained stable at $1, with a total market value of about $78.43 billion. Binance Coin, the fourth largest cryptocurrency by market capitalization, experienced a decrease of 14.7% during the last week, compared to a loss of 6.4% in recent hours, trading today at $440.25, with its total market value decreasing to $73.86 billion.
As for Tether, which ranked fifth among the largest cryptocurrencies by market capitalization, it remained stable at $1, with a total market value of approximately $43.208 billion.
