The largest cryptocurrency, bitcoin, fell 13% to $51,182 at 3:42 p.m. ET on Monday, after falling 13.1% last week, its worst performance since the collapse of the FTX exchange. Ethereum lost more than 20% of its value before recovering slightly to $2,274. Most major cryptocurrencies also posted losses.
Cryptocurrency stocks also saw big declines. Coinbase Global, the largest U.S. cryptocurrency exchange, fell more than 20%. MicroStrategy, known as a bitcoin benchmark, shed nearly 30%. Shares of cryptocurrency mining companies like Marathon Digital Holdings and Riot Platforms fell 20% and 15%, respectively.
The cuts come as a global sell-off in stocks intensifies, reflecting concerns about the economic outlook and questions about whether heavy investment in artificial intelligence will live up to expectations. Geopolitical tensions in the Middle East are adding to investor uncertainty.
About $1.2 billion worth of cryptocurrency investments have been liquidated in the past 24 hours, one of the highest levels since early March this year.
On August 2, US bitcoin ETFs saw their largest outflows in three months. It remains to be seen whether these funds will attract investors on a decline when trading resumes, or if they will see even larger outflows.
Overall, bitcoin and ethereum investment products saw outflows of $400 million and $146 million, respectively, in the week ended Aug. 3, according to CoinShares data.
