The weeks of calm that preceded last Saturday were a lull for some investors before the storm. The weekend, the main cryptocurrencies fell to values not seen since 2020. Bitcointhe coin with the largest market capitalization has fallen by about 13% in the last 24 hours and is trading below $ 24,000.
Ethereumsecond favorite reduced by 15.55% and the other altcoins – alternative bitcoin tokens – followed suit. BNB, the cryptocurrency of Binance, almost 13% while Cardano and Solana fell 10.42% and 16.15%, respectively. In the last seven days, major tokens in the crypto world have lost up to 47% of their value. ETH is one of the most affected with a loss of 35.32% of its value.
The risk scenario in the sector was exacerbated by the collapse of the cryptocurrency luna and the Terra ecosystem, which maintained the stable UST coin.
In the last few hours it became clear that the cryptocurrency lending platform Celsius – one of the main in the United States – stopped withdrawals, transfers and exchanges due to “extreme market conditions” with the intention of “protecting its consumers”. On social networks, the netizens call him a “Crypto playpen”.
Nexo, a competitor, announced its intention to acquire the company. “Following what appears to be insolvency from Celsius and given the implications for retail investors and the crypto communityNexo has officially expanded its official offer to acquire qualifying assets from Celsius after the freeze of its withdrawal “, they tweeted.
The latest figures were known last Friday inflation of the United States, corresponding to May. Prices increased by 8.6% compared to the same month last year, a new record of 40 years. Faced with these figures, markets collapsed today amid fears of a renewed tightening of US interest rates by the Fed and a possible recession.
Global uncertainty and rising US Federal Reserve interest rates have sparked a “crypto winter.” In April, bitcoin was traded at margins over $ 48,000. Only two months later, it is less than half the value. However, the change in market conditions has begun to create a crisis of confidence in the system. bitcoin “Index of fear and greed” (index of fear and greed, the measure of market sentiment of alternativne.me, with a score of 11, reflecting the feeling of “extreme fear”
Many specialists diagnosed the beginning of a four weeks ago bear market. This means that, at least in the short term, values will remain stable or fall in anticipation of a better investment context. Investors, with uncertainty, prefer to put their money in safer options, such as US government bonds, which, with rising interest rates, reach maximum values that have not been recorded for decades.
Since November 2021, when it peaked at $ 67,617, bitcoin has lost more than a third of its value with a 65% correction, while the entire market capitalization of cryptocurrencies has fallen from $ 3 billion to $ 959.72 billion.