Cryptocurrency As market sales accelerated, Bitcoin fell below 18,000.
According to data from analyst firm Coinmarketcap, the value of the global cryptocurrency market, including Bitcoin, fell by about 0.17% in just 24 hours, to just under $ 836 billion.
The price of the largest cryptocurrency, Bitcoin, temporarily dropped below $ 18,000 for the first time since December 2020, then recovered slightly and rose above $ 19,000.
Bitcoin depreciation over the past 7 days has approached 31%. On May 21, 2022, the market value of Bitcoin was $ 558.6 billion, while as of June 19 it had fallen below $ 400 billion.
The continuation of the downward trend in the price of Bitcoin causes severe losses in other cryptocurrencies.
Ethereum, which ranks second in terms of market value, also lost more than 32% in the past week, dropping below $ 1000.
It was interesting to note that the latest crypto money market decline came after the week of the highest percentage drop in the past two years, due to rising interest rates in the US stock market and the growing risk of recession in the economy. .
In mid-May, after the cryptocurrency TerraUSD “plummeted” in value, shaking the cryptocurrency market, Celsius Network, one of the largest cryptocurrency lenders, announced on June 13 that it would suspend all transactions due to “market conditions.” extraordinary “. This has led to greater uncertainty in the market.
Despite the turmoil surrounding the Celsius Network and the views of central banks, notably the US Federal Reserve (Fed), that they will continue the tightening process more aggressively after the Fed hiked 75 basis points last week As investors shy away from risky assets, in parallel with this, growing uncertainties in the cryptocurrency industry continue to keep the cryptocurrency market under pressure.
THE LAYOUTS ARE EFFECTIVE
Cryptocurrency exchange Coinbase announced on June 14 that it will cut its workforce by 18%.
The layoffs are increasing uncertainty in the market as they are seen as a sign that companies are not expecting a rapid recovery in the cryptocurrency market. On the other hand, it is interesting to note that some cryptocurrency miners are selling their holdings. Smaller companies, in particular, are experiencing financial hardship and liquidating their Bitcoin holdings, as miners earn only 39% of their average revenue due to the drop in Bitcoin’s price.
LONG-TERM BEAR MARKET?
Analysts say a protracted bear market for cryptocurrencies is likely due to a “crisis of confidence” in the cryptocurrency market in this economic environment, combined with geopolitical uncertainties, high interest rates, and the continuing negative view of cryptocurrencies by major players. lawmakers and the risk of the economy falling into recession.