Cryptocurrency markets suffered significant losses in the first half of 2022, with market capitalization falling from $2.9 trillion at the end of 2021 to less than $900 billion at the start of June 2022. The most popular cryptocurrency , Bitcoin, was trading at around $21,493, down 54% year-to-date. Ethereum, the second-largest crypto by market cap, is down around 56% year-to-date, trading at $1,651.
While the crypto has maintained its popularity and interest over the past few months, its value has moved in step with the stock market. In March 2022, Bitcoin and the S&P 500 hit a 17-month high, indicating that the two markets are moving in similar directions. For the crypto market in particular, a number of factors ranging from crypto crimes and inflation to layoffs and an ongoing liquidity crisis have plagued the industry, leading to the current crypto market crash. -currency and creating a “cryptocurrency winter”.