They call it Bitcoin crash on Twitter. Others think globally and call it crypto crash. Anyways, it’s about the prominent cryptocurrencies crashing. What’s going on?
Bitcoin sheds 12% in 24 hours as a fresh altcoin meltdown combines with macro pressures to offer nothing but misery for hodlers.
The combined market cap of nearly 20K cryptos has broken below $1 trillion, from a record-high of $3 trillion
Bitcoin crash seems imminent?
Bitcoin (BTC) begins a new week with a totally different feel to last as BTC/USD seals its lowest weekly close since December 2020.
A night of losses into June 13 means that the largest cryptocurrency is now edging closer to beating its ten-month lows from May.
The reasons for that are quite obvious.
Shock inflation data from the United States last week sparked a chain reaction across risk assets and low weekend liquidity appeared to exacerbate the consequences for crypto assets.
The macro pain continues this week.
The Federal Reserve is due to provide information on rate hikes and the economy more broadly. That’s the first official policy update since the inflation figures.
The mood among analysts on both Bitcoin and altcoins is obvious.
It’s bearish. It looks like a resignation. A period of painful trading and hodling conditions may have to be endured before a return to the upside. At least if you tend to believe it all chimes with the historical patterns of Bitcoin’s halving cycles.
What happens next?
Today’s news about Celsium and CEL token falling are not optimistic. This collapse might not be as huge as what happened with Terra’s UST and LUNA tokens in May.
But Bitcoin and altcoins will definitely take the hit.
If you believe in crypto winter at all, this is the time to be worried. Or excited, depending on what investments do you prefer. US Dollar is getting seriously stronger, if you’ve noticed.
One user cleverly wrote on Twitter:
“With Bitcoin dropping below key support at $25K and Ethereum below 1300, the combined market cap of nearly 20K cryptos has broken below $1 trillion, from a record-high of $3 trillion. That’s $2 trillion down, $1 trillion left to go. The last trillion will be the most painful.”