The Great Crypto Fall – Sell Off Accelerates
The Great Crypto Fall, June 15 – Bitcoin dropped to a new 18-month low on Wednesday, dragging smaller tokens down with it and sparking a sharp drop in crypto markets triggered by crypto lender Celsius freezing customer withdrawals.
The world’s largest cryptocurrency dropped 7.8 percent to $20,289, its lowest level since December 2020. It has lost approximately 28% of its value since Friday and more than half of its value this year. It has fallen roughly 70% since its all-time high of $69,000 in November.
Cryptocurrencies have taken a beating of an almost unprecedented amount this week after US crypto lender Celsius froze withdrawals and transfers between accounts, fueling fears of a broader fallout in digital asset markets already shaken by the demise of the terraUSD and luna tokens last month.
Expectations of sharper interest rate hikes by the United States Federal Reserve as inflation in the world’s largest economy soars have also put pressure on risky assets ranging from cryptocurrencies to stocks.
According to Digital Asset Manager CoinShares, crypto funds lost $102 million last week due to investor expectations of tighter central bank policy. According to CoinMarketCap data, the global crypto market is now worth less than $900 billion, down from a peak of $2.97 trillion in November.
Many believe there is lots of scope for Crypto-markets to crash further still and a long way to go before the markets bottom out.”
The market’s ripples haven’t stopped yet,” said Scottie Siu, investment director at Hong Kong-based Axion Global Asset Management. “Unfortunately, I believe we’re still in the middle of it; the game isn’t over.”
According to people familiar with the situation, Celsius has hired restructuring lawyers and is looking for possible financing options from investors.
According to the company, Celsius is also looking into strategic options such as financial restructuring.
Smaller cryptocurrencies, which tend to move in lockstep with bitcoin, fell as well. Ether, the second most valuable token, fell as much as 12% to $1,045, a new 15-month low. So Over all, we are concluding it a The Great Crypto Fall.
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