The crypto market has shown bearish signs since last Friday (June 10), when US consumer inflation in May hit its highest level in more than four decades. The stock market dipped into the red, and the crypto market has suffered the same fate.
Late last week, it was reported that DeFi lending giant Celsius allegedly sold its staked crypto to tackle the liquidity problem. On the morning of June 13, Celsius caused a wave of fear-mongering when it halted all withdrawal, swap, and transfer services, leading to a mass sell-off in the market. Bad news on DeFi, TRON’s stablecoin USDD being de-peg, and Binance blocking BTC withdrawals make the situation even more worse.
Bitcoin over the past 24 hours has lost up to $3,500, down 12% from $26,900 to $23,500. This is the lowest price of BTC since December 2020. Ethereum has also lost 16% of its value in the last 24 hours and set a new bottom of 2022 when trading around $1,180.
Despite the fact that the ETH price got oversold after 10 weeks of continuous decline, Ethereum continues to be dumped. In the history of ETH, this is the second time it has reached the oversold level on the weekly chart, with the first time in 2018.
The crash of the crypto market has not stopped at the time of writing, even though derivative orders liquidated in the past 24 hours of the crypto market have reached more than 968 million USD, mostly BTC and ETH. Statistics show that if ETH falls to $1,100 – $1,200, up to 900 million dollars will be deleted as collateral for loans on Aave, MakerDAO and Compound. Meanwhile, there will be about 500 million USD of WBTC (BTC on Ethereum) burned if the price dumps to 21,500 USD.
Currently, the global crypto market cap is only 960 billion, around 200% from its all-time high of approximately $3 trillion last November. This is also the first time since January 2021 that the crypto market cap has fallen below $1 trillion.
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