In the past few months, the world of cryptocurrencies has been going through hard times, and it seems the situation is only getting worse. Every day we read the news that tokens are updating their anti-record, stablecoins are losing their link to the asset, and much more. It leads to the fact that there is a noticeable panic in the market and many holders of cryptocurrencies seek to get rid of them, which further worsens the situation.
The fall of bitcoin
On June 13, Bitcoin fell below $24,000 for the first time in years. At the time of writing, the exchange rate is $20,500 for Bitcoin and $1,055 for Ethereum. The world has not seen such indicators for a very long time, and this inspires real fear for their assets among beginners and experts.
Following the main cryptocurrencies, all other assets went down. Solana (-13.4%) and Dogecoin (-11.4%) fell below the rest.
It caused the fear and greed index to reach 11 points, which means “extreme fear.”
According to experts, such sharp jumps are associated with the acceleration of inflation in the United States and with the latest events on Walt Street. It is worth noting that most world-famous exchanges have lost several percent over the past day, and the downward trend will continue. The head of MicroStrategy, Michael Saylor, noted that inflation “has not reached its peak, like bitcoin.”
Also, many opponents of bitcoin express that the bitcoin rate may drop to 8-10 thousand US dollars this year. It can bring great harm to other assets as well.
Stablecoin USDD briefly lost its peg to the dollar
For a long time, stablecoins were considered the most reliable asset used to pay for goods and services. But recent events show that this is not the case. Before the world had time to recover from the collapse of Terra, namely the Luna stablecoin, there were signs that other blockchains were not doing so smoothly.
On June 13, the stablecoin USDD temporarily lost its peg to the dollar and dropped to 0.97 USD. Experts attribute this to the fall of the market as a whole. At the same time, there are prerequisites that the stablecoin will return to its position. At the time of writing, the asset’s value was 0.99 USD.
A few days earlier, the TRON DAO Reserve organization purchased BTC and TRON tokens for 50 million USD to back this stablecoin. According to the head of the Tron Foundation, Justin Sun, the organization learned a lesson from the situation around Terra to prevent the USDD from collapsing.
Celsius collapsed by 50%
Crypto lending platform Celsius is alarmed by the extreme situation in the cryptocurrency market, so it has temporarily suspended the withdrawal of assets and other transactions. It caused the value of the token issued by Celsius to drop by 50%.
According to the platform founders, they understand all the inconveniences and problems experienced by the holders. Still, temporary restrictions on the execution of transactions are the most responsible actions that can be taken to protect the community as a whole.
It is worth noting that problems arose several months later when Celsius suspended interest payments on the Earn product to new users from the United States in April.
Earlier, EO Celsius Alex Mashinsky said that the fall of the cryptocurrency market is directly related to the actions of sharks on Wall Street.
In the end
The global crisis will push all industries, and cryptocurrencies are no exception. It is worth noting that the inflation rate in the US has not yet reached its peak, so we should expect that the cryptocurrency rate will continue to fall in the next few weeks. It is assumed that if the US government authorities reduce the regulation level, crypto enthusiasts do not massively withdraw their assets.