Crypto selloff wipes out $270 billion in value as bitcoin, ether plunge

The cryptocurrency market plummeted in value on Sunday, as investors continued selling out of risky assets.

Led by a drop of 11% in bitcoin in the past 24 hours and a 21% plunge in ether, the overall value of cryptocurrencies sank by about $270 billion, according to CoinGecko data.

The selloff in the crypto market coincided with a broader slide in equities in Asia-Pacific markets. Japan's Nikkei 225 dropped as much as 7%, extending losses that began last week, after the Bank of Japan announced it would hike its benchmark interest rate to the highest level in 16 years.

In the U.S. the Nasdaq slid 3.4% last week into correction territory, capping off the tech-heavy index's worst three-week stretch since September 2022, when the market was in freefall. Amazon and Nvidia contributed to the declines.

Last week's drop in stocks was tied in part to disappointing earnings, a weaker-than-expected jobs report, higher unemployment and a declining manufacturing sector. The U.S. Federal Reserve opted to hold its benchmark rate steady and didn't promise a rate cut in September, which many market experts had baked into their forecast. Lower interest rates tend to correlate with better performance for risky assets.

Bitcoin's price has reached its lowest level since February. The world's largest cryptocurrency is trading at about $54,000. It's still up almost 23% this year.

The price of ether, the native token underpinning the ethereum blockchain, fell to around $2,300 and has erased its gains for the year. Binance's BNB token was down more than 15% and solana is trading 10% lower.

Investors are also looking out for new trade data from China and Taiwan this week, as well as central bank decisions in both India and Australia.

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