Bitcoin and the Cryptocurrency market have crashed to a new low today (6/13). This price was experienced in the previous bull run in December 2020. The global market cap also has downsized to below $1 trillion from $1.10 trillion recorded yesterday.
What is the “Bitcoin crash” reason?
What do experts say?
Why is crypto crashing today?
Bitcoin and the Cryptocurrency market have crashed to a new low today, on June 13th. This price was experienced in the previous bull run in December 2020. The global market cap also has downsized to below $1 trillion from $1.10 trillion recorded yesterday. The cryptocurrency market cap has fallen to $975 billion today, while almost every top coin is now worth 70% to 90% less than their ATH.
This trigger might have occurred due to the enormous sell-off by investors caused by recent U.S inflation news. Investors are also continuing to stay away from risky assets, which is reflected in the stock markets as well.
Bitcoin, the biggest and most popular cryptocurrency, has fallen to $24,000, while almost all altcoins, starting from Ethereum, experiencing bleeding prices since the weekend.
Ethereum has fallen to its lowest level in more than 14 months, trading currently around $1200 at the time of writing. BNB has fallen by almost 12% and is hovering around the $220 mark.
What do experts say?
Experts say that the crypto price dive indicates the investors’ falling risk appetite. They are cautious about risky assets. Crypto is regarded as one of the most ferocious instruments for investment purposes, considering all the uncertainties and volatilities.
“Cryptocurrencies have been under a lot of pressure from the Federal Reserve, raising the interest rates to combat inflation over the past few months. Bitcoin, Ethereum, and most cryptocurrencies suffered losses over the weekend after a broad sell-off following the data showing US inflation hitting a 40-year high,” said Edul Patel, Co-Founder, and CEO of the crypto investment platform Mudrex.
As investors seem to have panicked, the number of crypto liquidations has been high since Friday. Bitcoin and Ethereum crashed from 14% to 18% and are currently trading at their lowest at $24,000 and $1,200. The bearish trend may likely continue in the next coming days.
While altcoins have historically underperformed Bitcoin, this time, they have an added pressure of potential regulatory roadblocks. A report by CoinDesk quoted an expert saying that only a few altcoins are likely to survive such market movements.
Shivam Thakral, CEO of crypto exchange BuyUcoin, said that the rising food, gas, and energy prices are putting tremendous pressure on the crypto market as Bitcoin and Ether have witnessed double-digit losses in the past 24 hours.
“After the consumer price index reported the highest inflation since 1981, financial markets across the globe have seen a sharp downturn,” said Thakral.
“The market is expected to remain choppy in the coming weeks, and countries around the globe continue to report high inflation numbers. The current dip in the crypto prices allows investors to buy crypto at 2021 prices, and we expect the seasoned investors to take advantage of the dip,” he added.
According to Darshan Bathija, CEO of crypto exchange Vauld, most investors worry that unless inflation numbers start dropping soon, the US Fed may have to tighten reigns by increasing interest rates at a faster pace than anticipated.
All this bad or good news and speculation will not return the losses the crypto community suffered, especially when the wound of Luna’s collapse did not fully heal yet. This market downtrend is not only hard to withstand for the low cap investors, but it also is harder for startups and new projects.
But the game and the team members of Chain of Legends never back down in dire situations like this. We always try our best to optimize the progress of the project and our community!
Don’t get overwhelmed by the brutality of the cryptos’ nature, for this shall pass too! Don’t forget that we are always backing each other in difficult times, and we will grow together!
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