Over the last week, numerous cryptocurrencies have seen prices plunge. As of last week, 40% of bitcoin investors were underwater on their investments, according to data from crypto intelligence firm Glassnode.
Bitcoin, which is the largest cryptocurrency by market cap, has its lost half its value over the last few weeks. Last Thursday, May 12, the price of a bitcoin fell to around $25,400. The coin was at an all-time high in November of nearly $69,000.
As of Monday morning, the coin has recovered slightly, sitting right near $30,000.
"The fear factor is high in crypto markets right now," says Kate Rooney, CNBC's technology reporter, who covers cryptocurrency. "The bulk of newer investors have lost money in crypto markets and may be looking to cut their losses."
Here's what's behind the recent losses in the cryptocurrency market.
