Crypto-economy falls below $1 trillion as Bitcoin and Ethereum plunge

The global market capitalization of all existing crypto assets has fallen below $1 trillion and the leading crypto asset, bitcoin, has slipped below the $20,000 region for the first time since mid-July.

Crypto economy collapses – Over $240 billion wiped out in 13 days

The capitalization of the global crypto-currency market is now just under $1 trillion, down 4% in the past 24 hours. This drop came after the crypto economy lost over 6% in the previous 24 hours. The major drop in the crypto-currency market came almost immediately after Fed Chairman Jerome Powell gave his speech at the annual Jackson Hole Economic Symposium on Friday.

Bitcoin is down 3.5 percent today and 4.5 percent over the past seven days, and the top crypto asset is trading at $19,968 per unit. Bitcoin fell to its daily low today touching $19,766. Ethereum slipped 5.1% on Saturday and has lost 8.8% this week.

The 24-hour global trading volume is $67.44 billion for the twenty thousand existing crypto-assets, but tether (USDT) accounts for $34.07 billion of the total. The Central usd coin (USDC) also recorded $7.75 billion of the total $67.44 billion. The volume between USDT and USDC accounts for 62.01% of today’s global trade volume.

While ETH lost 5.1% on Saturday, solana lost 5% as well and dogecoin lost 3%. Today’s biggest losers include lido dao (LDO) down 11%, radix (RDX) lost 6.8%, and ethereum classic (ETC) lost 6.9%. The tokens internet computer (ICP), chiliz (CHZ), defichain (DFI) and polygon (MATIC) managed to gain between 2.3% and 5.2%.

The cryptoeconomy is much lower in USD value than it was on August 14, when the market capitalization of all existing currencies was $1.24 trillion. On that day, bitcoin had broken through the $25,000 area, and ethereum had managed to exceed $2,000 per unit. Billions have been wiped out since that day, in the space of just under two weeks, over $240 billion has disappeared.

Mt. Gox releasing 140k BTC tomorrow is probably fake news as there’s no defined date, repayment system isn’t live yet, could take months to get released.

But, even if we assume it gets released then it’s simply an unnecessary fear as daily bitcoin trade volume is >1.5M BTC. pic.twitter.com/VquVZHtFuo

– oddgems ⋈ (@oddgems) August 27, 2022

While yesterday’s drop was blamed on the Fed, today’s drop is surrounded by speculations and rumors on social networks that Mt. Gox’s 140,000 bitcoins reserve will be released soon. Some believe that Mt. Gox will sell its bitcoins very soon, while others are calling the rumors “fake news.” Despite the veracity of the Mt. Gox coin discussion, hundreds of tweets address the topic on Twitter.

Mt. Gox, a once-dominant bitcoin exchange, lost 850,000 bitcoins to fraudulent withdrawals, leading it to file for bankruptcy in 2014. The theft prompted efforts by users to discover who had taken their digital currency, as well as a civil lawsuit to recover 200,000 bitcoins that the exchange later identified.