In the world of cryptocurrency, experts often say that when an asset loses 99% of its value, it can fall another 99%. For weeks, digital token owners felt they had bottomed out, but the days go by and look the same: bitcoin has lost 27% in a week and almost 70% since its record on November 10, 2021, at which it reached $ 69,000. Just yesterday, it fell to a low of $ 20,822 and then rose slightly. It was $ 22,400 this morning.
According to Simon Peters, eToro market analyst, this sudden decline is due to a “Fear of accelerating inflation in the United States”he said in a press release. Monthly inflation in the US fell from 8.5% in April to 8.3%, indicating that price growth has reached a “maximum”, but a new blow of 8.6% on Friday shook the stock and cryptocurrency markets. »
He believes that the correlation with the stock market is increasingly noticeable: “Most of it [de la chute] due to the fact that the owners of institutions also calibrate their risky assets, whether technology stocks or bitcoins. »
Craig Earlam, an Oanda market analyst, shares his views on the macroeconomic aspect. We entered, according to him, in a “Cost of living crisis”. He still believes that the change in tone in the European Central Bank, which has finally decided to raise key rates, is affecting the cryptocurrency market.
Celsius emphasizes the fall
“$ 20,000 suddenly seems very vulnerablehe wrote. The worst is yet to come […] Market conditions were already less optimal – high risks and expectations of higher interest rates – but add to this that the main cryptocurrency lender froze withdrawals, and this is really the perfect storm. »
He refers to the problems faced by Celsius, which specializes in reward savings and digital asset loans. He did indeed suspend the withdrawal of funds from yesterday, which intensified the atmosphere of panic in the markets. What’s worse, the world’s largest stock exchange, Binance, is also fast had to temporarily stop bitcoin transfers. For the last break lasted only three hours, Monday, but for the first refund is still impossible.
.@CelsiusNetwork suspends all withdrawals, exchanges and transfers between accounts. Acting in the interests of our community is our top priority. Our work continues and we will continue to share information with the community. More here: https://t.co/CvjORUICs2
– Celsius (@CelsiusNetwork) June 13, 2022
“Everything suggests that Celsius, therefore, will be insolvent, which will be a new tsunami in the ecosystemJudge Pierre-Yves Dietlot, CEO and Founder of Ledgity. […] In this case, we would be in the presence of poor risk management, rather than questioning the underlying technology and innovation. »
It will be recalled that bitcoin has already lost 80% of its value after the 2017-2018 bubble. The sharp fluctuations he experiences throughout the year are not uncommon. And if many savers, unfortunately, lost money in this accident, others are calm and calm on social media.
– Mister-TK Mining (@MiningTk) June 13, 2022
– crypto_hello ???????? (@crypto_hello) June 13, 2022
Newcomers call those who came to the peak of the bear in 2022 for $ 23 thousand and $ 1k2, “super happy”
This is also a reality between 2 cycles pic.twitter.com/NDku5HKKEB
– CryptoMatrix (@ CryptoMatrix2) June 13, 2022