Major cryptocurrencies fall 15% to 20%, bitcoin returns to its lowest level since the end of 2020 – less than $ 23,000… The cryptocurrency market collapsed due to a new wind of panic that gripped investors on Monday. «Probably the biggest massacre in the crypto world “- even Jeffrey Hull, an analyst at Oanda, said on Monday.
The total market capitalization of the crypto market fell behind $ 940 billion, down by half from last November. Paradoxically, fears of rising inflation and rising interest rates underlie this decline. Bitcoin, like ether, behaves just like the stock markets, far from the ideal its founder sought as a safe haven against this evil. «The reasons for this phenomenon are various, but most of them are due to the fact that institutional owners measure their risky assets in the same way, whether they are technology stocks or bitcoins.explains Simon Peters, eToro market analyst.
The Celsius effect
Another crypto-specific event was added on Monday. Celsius credit platform has suspended its 1.7 million customers from withdrawing or transferring their cryptocurrencies. Celsius offers its users to lend their bitcoins to ethers at an interest rate to manipulate other cryptocurrencies.
The collapse of the Terra dollar-denominated stablecoin a few weeks ago has had a major impact on the platform, which has $ 12 billion in managed assets and is no longer thought to be solvent. This is enough to scare other investors who are afraid of the domino effect on other assets or players in a young, fragile ecosystem. The storm swept away the entire crypto sector, causing the US giant Coinbase to fall 10%.
Source: Le Figaro
I am David Wyatt, a professional writer and journalist for Buna Times. I specialize in the world section of news coverage, where I bring to light stories and issues that affect us globally. As a graduate of Journalism, I have always had the passion to spread knowledge through writing.