Bitcoin lost $10,000:
Ethereum also lost $1,000 in just four days:
Analysts said that the sharp sell-off of cryptocurrencies may not be over yet.
This chaotic exit from the crypto space coincided with a massive drop in stocks as US stocks approach their worst month since March 2020.
At the start of the new week, market sentiment remains risk-averse as investors prepare for the Fed's aggressive statement about the monetary policy on Wednesday and a rapid increase in geopolitical tensions in Ukraine.
It is clear that this risk-taking attitude has hurt the cryptocurrency market, which has lost $130 billion in the last 24 hours. After Bitcoin and Ethereum reached their new all-time highs in November, they are now trading 50% lower.
The prospect of a much tighter monetary policy is extremely putting pressure on risky assets, including cryptocurrencies.
According to Exinity chief market strategist Hussein Sayed, this massive sell-off shows investors that Bitcoin cannot be a good hedge against inflation.
In addition, growing geopolitical tensions add uncertainty to an already very cautious market. Over the weekend, the United States issued an order to family members of diplomats in Kiev to leave Ukraine.
On Monday, NATO announced that it was sending additional ships and aircraft to Eastern Europe.
What's next?
Analysts warn that if the stock sell-off does not end, the cryptocurrency could continue to plunge.
