Value of the entire crypto market declines to a low of $1.7 trillion.

The market value of cryptocurrencies declined to a low of $1.7 trillion today from $2.12 trillion on Monday, down 16.5 percent in 48 hours, resulting in a loss of over $350 billion, according to the data from the crypto portal CoinMarketCap. The leading cryptocurrency saw a price drop of 15% from $47,211 to $39,876 during the said duration, while Ethereum slipped nearly 18% from $3,325 to $2,730.

The decline followed the action in the global markets. 

The decline in the crypto market followed the action in the global markets. The Evergrande default fears sparked Asian equities volatility, and UK energy prices soar, putting most energy providers at risk of insolvency, while Wall Street saw equally worrying falls as the S&P fell 1.7 percent on Monday, its worst trading day since May. “Fears of a global economic correction have intensified over the last few months, and Evergrande might perhaps be the catalyst… As expected, crypto followed global markets,” Freddie Evans, a sales trader at digital asset broker GlobalBlock, said. 

“Dip in market cap attributed to the Evergrande situation in China.”

“Some have attributed the sudden dip in Bitcoin to the currently ongoing Evergrande situation in China, which has already caused turmoil in traditional markets,” Jonas Luethy of GlobalBlock had said on Monday. On Thursday evening, the crypto market cap had recovered to $1.98 trillion with a Bitcoin share of nearly 42% at $44,041 at the time of filing this report, while Ethereum recovered to $3,113 and Solana to $148. Evergrade has caught regulations attention globally as its enormous debt burden of more than $300 billion could reportedly impact global markets and economies.