By Medha Singh

(Reuters) – Crypto assets have raked in nearly $800 billion of market value during the last month. They reached a low point of $1.4 trillion Tuesday according to CoinMarketCap data. This is due to a decrease in appetite for risk assets and easy monetary policies.

The crypto market’s largest component, 40%, was at its lowest point in 10 months on Tuesday. It then rebounded to $31,450 six days later, after reaching $40,000. This was 54% lower than its Nov. 10 record high of $69,000.

On fears of global interest rate increases, digital assets have seen their prices plummet. Nasdaq, a tech-rich stock exchange, was 28% lower than its record November 2021 high.

The total cryptocurrency market value stood at $2.2 trillion, a substantial decrease on its historic peak of $2.9 billion in early November.

Glassnode, a blockchain data provider, stated in a note that Bitcoin “remains highly correlated with the broader economic circumstances, which suggests the road ahead may unfortunately prove to be rocky one at best for the moment,” he said.

Stablecoins are a more secure crypto currency than stablecoins and have shown signs of weakness. TerraUSD, fourth largest stablecoin in the world, saw its value drop by a third on Tuesday due to its loss of peg with the dollar.

According to Coinshares, despite bitcoin’s slump in price, inflows to funds and products related to it reached $45 million last Monday as investors took advantage price weakness.

Sebastien Galy (senior macro strategist, Nordea Asset Management) said that some cryptocurrencies have been inflated by an “enormous amount” of liquidity. As central banks tighten their monetary policy, he expects that crypto will be under increasing pressure, as it is also closely correlated with high-growth stocks.