The meteoric rise of 2020 and 2021 looks well and truly over. Since the beginning of May, all cryptocurrencies have been going through tough times. While investors are posting their worst losses in years, the market is failing to stabilize and opting instead to fall relentlessly. The situation is so catastrophic that Bitcoin lowest levels in monthsexperts are already predicting that it will soon drop below the $20,000 mark.
And after the events of this weekend, it will be difficult to prove them wrong. Indeed, it is the entire cryptocurrency market that has once again been shaken. Currently, the latter is only worth $1,030 billion or 7.5% drop in just 24 hours. Bitcoin, for its part, has of course suffered a lot from this brutal decline. currency is back under $26,000for the first time in months.
Cryptocurrency Market Experiencing Another Catastrophic Crash
After a brutal 18% drop, Bitcoin is now valued at $25,513, or 24,357 €. This is the lowest level for the year as well as for more than a year. As for Ethereum, the descent has been even more violent. Within a week, the #2 coin lost 28% of its value. And these two currencies are far from being single currencies. DOGE dropped 28%ADA 24%, XRP 18%, SOL 31%, BNB 22%, DOT 28%, AVAX 35% and MATIC 25%.
Frankly, there is panic all around. The question arises of the origins of a collision of this magnitude. For the past few months, economic and geopolitical instability triggered some hesitation among investors globally. Then, in mid-May, the devaluation of stablecoins, especially TerraUSD, caused a fluctuating chain reaction across the entire cryptocurrency market. But that doesn’t explain the sudden drop this weekend.
If the reasons are most likely more than one, it’s hard not to attribute the phenomenon to the surprise announcement of the Celsius platform that took place last night. In a press release posted on his blog, he says: “Due to extreme market conditions, we are announcing today that Celsius has stopped all withdrawals, clearing and transfers between accounts.”. platform to justify yourself, “Taking this action today to put Celsius in a better position to meet its obligations to withdraw over time”.
As a reminder, Celsius Network offers investors Tracking your assets to make money through borrowing. Celsius allows the use of 35 cryptocurrencies, including of course the most popular and most stablecoins such as TerraUSD. Predictably, the announcement was followed by a drop in CEL, the platform-specific cryptocurrency, causing it to lose more than half of its value in just an hour.
.@CelsiusNetwork It pauses all withdrawals, swaps and transfers between accounts. Acting in the interests of our community is our top priority. Our activities continue and we will continue to share information with the community. More here:
— Celsius (@CelsiusNetwork) 13 June 2022
So the order of these cases is not helping Bitcoin and its cousins recover. While some continue to argue that cryptocurrencies are the perfect fallback solution in case of high inflation, current context proves this theory wrong. At this rate, it’s hard to imagine Bitcoin crossing $250,000 as some predicted.
