Cryptocurrencies track selloffs in stocks, scrapping m-cap of $1 trillion. When will bearish saga end

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The time when investors looked at cryptocurrencies as a medium for hedging funds against a stubbornly rising inflation, seems to have faded unexpectedly. On Monday, the crypto market was bleeding red to the point its valuation erased the $1 trillion mark. Cryptocurrencies are on many occasions compared as a better safe haven than gold which has been a traditional resort during steep selloffs in stocks. But now, there is a curious case of the crypto market tracking the bearish sentiment in global stocks.

According to CoinMarketCap real-time performance data, the global crypto market cap nosedived by 15.28% to $944.92 billion over the last day. However, in volume terms, the market jumped 73.92% to $147.17 billion over the last 24 hours. The total volume in DeFi is currently $10.17 billion, 6.91% of the total crypto market 24-hour volume. The volume of all stable coins is now $133.44 billion, which is 90.67% of the total crypto market's 24-hour volume.

Crypto market leader Bitcoin dived to its lowest level in 18 months and erased the $23,000 mark. Bitcoin was currently around $22,826.09 down by over 18%. Its market cap stood at around $436.70 billion. The cryptocurrency's dominance dipped by 1.07% to 46.30% over the day. With the latest downside, Bitcoin's weekly drop is more than 27%.

Bitcoin's counterpart Ethereum plunged by over 21% and was trading around $1,196.43. Ether's market cap stood around $143.76 billion.

Talking about the crypto market's performance, Rajagopal Menon, Vice President, WazirX said, “Crypto markets have seen a correction due to weak global cues. Internationally, stock and crypto markets have become highly correlated."

Menon further said, "The inflation rate globally has also been a major concern