The Market Cap of Crypto Falls below $1.4 Trillion

On Monday, the overall market cap of cryptocurrencies fell below $1.4 trillion after the recent negative sentiments seen in the market.

As the world's most famous and widely circulated cryptocurrency, Bitcoin suffered a nosedive to less than $34,000 today, according to the latest data from Coinmarketcap. As of press time, the total market of Bitcoin is estimated to be around $640 billion.

The total value of digital assets reached $2.6 trillion on May 12, 2021, which was the highest amount ever recorded, and the market stepped on a downward slope ever since. The market cap plummeted in the weeks that followed, reaching a low of around $1.25 trillion on May 24.

The recent $100 billion sell-off in the market was set off by a number of factors. The key reason, according to analysts, is the recent cryptocurrency ban announced in China. In addition, Bitcoin was slammed by Elon Musk, the CEO of Tesla, for its adverse impact on the environment.

"The dominant driver of Bitcoin right now is the crackdown on mining & trading in China that began in May. This created a forced & rushed exodus of Chinese capital & mining from the Bitcoin network – a tragedy for China and a benefit for the Rest of the World over the long term," Michael Saylor, CEO of MicroStrategy, said in a Tweet on Saturday.