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Traders’ flight from risky investments wipes $1tn in crypto over six months

Surging inflation is spurring the Federal Reserve to raise interest rates faster — as a result, investors are unloading risky assets, including cryptocurrencies

Traders’ flight from risky investments has halved the price of bitcoin and other cryptocurrencies, wiping out more than $1tn worth of digital money since November.

Wild swings are fairly common with cryptocurrencies, but even seasoned investors were left reeling as bitcoin dropped 29% over a seven-day losing streak that just ended as a stablecoin — one part of the crypto world that touted its stability — unexpectedly crashed.

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