Bitcoin fell a further 6.6% to a new 6-month low of just over US$33,000 on Monday morning, as investors fretted Russia and Kazakhstan will be the next countries to clamp down on cryptocurrencies.
Ethereum dropped 10.6% to US$2,258, to also languish at its lowest price since July.
The world’s two leading cryptos have slumped over 50% since record highs in November as investors seek safe havens from rising inflation and as China banned crypto mining amid fears of tightening global regulation.
Alt-coins Cardano, Solana, and Terra plunged 12.9%, 18.4%, and 10.2% respectively over the past 24 hours.
Polkadot, Avalanche, and Polygon tumbled 11.4%, 10.3%, and 15.3% respectively, while doggy meme-coins Dogecoin and Shiba Inu slipped 6.5% and 12.7%.
There was no shortage of sourness in the crypto market with 98 of the 100 most valuable cryptos trading in negative territory.
USD Coin and Terra USD were the anomalies to break the trend and mark some gains, albeit only being 0.1% each.
"Moving forward, digital assets are likely to remain volatile as the Fed communicates its monetary policy for the coming months and hints at how it plans to raise interest rates in the short term," said Naeem Aslam at AvaTrade.
"Furthermore, reports indicate that Washington is planning to release its plan for dealing with cryptocurrencies as early as February and will ask authorities to begin weighing the benefits of the digital sector against its potential threats."
For Bitcoin $30,000 and for Ether $2,000 are the levels to watch, said Victoria Scholar, head of investment at Interactive Investor.
“The crypto market is in turmoil," she said.
"It looks as though the downtrend remains intact with the potential for further downside towards $30,000 as the next major round number support level, which coincides with the summer trough. Similarly, ether has shed around 50% with $2000 as the next key level to watch. It looks like the bubble has burst as panic selling grips the market.
"What this episode has taught us is that this is still a very nascent asset class with a high level of correlation between individual crypto assets, particularly on the way down. It has also taught us that for those willing to enjoy the ride higher, traders need to be able to stomach the sharp volatility and steep declines as well.
"Brave traders might use this major repricing as an opportunity to buy the dip,” Scholar concluded.