Panic in the cryptocurrency market. Celsius Platform Issues Caused Big Declines in BTC and ETH

Panic on cryptocurrencies. This is all because of the problems at the Celsius platform, which overlaps with fears of further interest rate hikes in the United States.

The BTC/USD exchange rate closed the week Sunday evening at the lowest since December 2020, and ETH/USD at the lowest since Q1 2021. Looking at the bitcoin chart, it looks like it is hovering in the above an abyss. If it falls, shortly we could see BTC at $20,000, and possibly $10,000. Well-known trader Jake Wujastyk pointed out on Twitter that the BTC/USD rate broke the 7-year uptrend line. Over the past 12 months, BTC has depreciated by -35%.

BTC / USD course – 1 year

Source: Trading View

Celsius Platform – Another Big Bankruptcy in the Crypto World?

Bitcoin lost -12% in the last 24 hours. One of the reasons for this mini-panic is the suspension of withdrawals by the financial services platform operating in the world of cryptocurrencies – Celsius. It is feared that a few weeks after the failure of the Terra/Luna ecosystem, there will be another major bankruptcy in the crypto world… This platform has 1.7 million customers who hold around $11 billion worth of crypto on it .

Bitcoin and cryptos do not handle high inflation well. They were meant to be protection against her, and the opposite is true. The market fears further interest rate hikes by the Fed. Risky assets do not handle the prospect of an increase in the cost of money badly. Inflation in the United States does not want to fall, on the contrary: the latest reading reports that it is at its highest for 40 years (8.6%).

See also: What’s next for BTC, CBDC and tokenization? State Street analysts predict digital asset market trends

Sentiment fatal to cryptocurrencies

Crypto investors are getting nervous and the sentiment is terrible…

Huge bitcoin fan Michael Saylor continues to claim that if BTC doesn’t fall to zero, it will one day hit $1 million. The problem is that his company MicroStrategy has about 129,000 BTC on its balance sheet and if the BTC/USD rate drops below $21,000, it will have to sell a lot of coins in its possession to cover the margin call. This could trigger further declines in the price of cryptos…

700 thousand Well-known Polish trader Rafał Zaorski lost in a long position opened a few days ago.

Bitcoin maximalists, however, are still standing. They indicate that many cryptocurrencies can fail, but bitcoin is completely different from them. They encourage further accumulation and HODL, i.e. keeping BTC in the wallet for the long term.

It should be remembered that many institutional investors have invested in bitcoin over the past 2 years. Apparently 38% of hedge funds have a position in BTC – reports Barron’s. These “big” fish will do a lot to get BTC quotes and earn on their positions.

See also: How investors can take advantage of upcoming innovations – experts Baillie Gifford

Leave a Comment