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%.
-Jake Wujastyk (@Jake__Wujastyk) June 13, 2022
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 .
Breaking: Celsius froze withdrawals. pic.twitter.com/HxWFsKvt0Y
— Dan Held (@danheld) June 13, 2022
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%).
#BTC what a fantastic hedge against inflation and a fantastic store of value.
8.6% inflation but more than 60% drop in Bitcoin price.
BTC is totally unsuitable as a means of payment. Why would the world allow mining to continue and destroy the climate for our (grand)children?
– XRP World (@XperienceIS) June 13, 2022
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…
Blooming Atomic Crypto-Winter
– Luna and Do Kwon
– Celsius (feelings)
– Lenders (consecutive and bank run)
– Microstrategy i @saylor
– Tron and stable algo
– Fluidity of curves
– large purse (with the letter B, maybe with the letter F)
– another bad Coinbase result
-Jacek Gadzinowski (@JackGadzinowski) June 13, 2022
The Bitcoin Fear and Greed Index is 11. Extreme Fear
Current price: $26,808 pic.twitter.com/jOE6ArjuID
– Bitcoin Fear and Greed Index (@BitcoinFear) June 13, 2022
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…
– Michael Saylor (@saylor) June 8, 2022
700 thousand Well-known Polish trader Rafał Zaorski lost in a long position opened a few days ago.
I close $BTC $ETH #long in the loss of 700k USD, I don’t understand what is happening in the market now, and if I don’t understand something, I give up. BTW was to listen to me @bigshortbets about trouble @CelsiusNetwork No risk no fun https://t.co/VYB9wFQkV3 pic.twitter.com/ZkbPueelb7
– Rafal Zaorski (@rafal_zaorski) June 12, 2022
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.
Yeah, #bitcoin is not broken. Yes I’m dong well. Great in fact. Come on, I’m not worried. Yes, I heard of Luna. No, I can’t tell you more because I don’t care to know more. Yes, I always stack. Come on, I don’t intend to stop.
– Lana Miles (@ilanaariel) June 12, 2022
— Dan Held (@danheld) June 13, 2022
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.
A PwC survey found that 38% of traditional hedge funds invest in crypto assets. But many are just “dipping their toes” into the industry. https://t.co/ujEsIonxgI
– Barron’s (@barronsonline) June 13, 2022