What is the cause of the crash of major cryptocurrencies and the one-third of the market capitalization at the peak?
Around June 13, 2022, the price of the virtual currency Bitcoin fell below $ 23,000 (about 2.9 million yen), the lowest in the past 18 months. This decline was associated with various factors such as the suspension of transactions on the DeFi lending platform 'Celsius'.
Bitcoin Price (BTCUSD) Falls 9% to $ 25,000 Level, Lowest Since December 2020 --Bloomberg
A Memo to the Celsius Community. We are writing with a very important… | by Celsius | Jun, 2022 | Medium
https://blog.celsius.network/a-memo-to-the-celsius-community-59532a06ecc6
With Bitcoin being the lowest since December 2020, the MVIS CryptoCompare Digital Assets 100 Index estimates that the top 100 tokens are down about 17% across the board from December. The total market value of cryptocurrencies, which exceeded $ 3 trillion in November 2020, fell below $ 1 trillion as of June 13, 2022.
Traders predict that the Federal Reserve will extend aggressive interest rate hikes as US inflation jumps for the first time in 40 years in May 2022, according to the economic newspaper Bloomberg. It is analyzed that a large amount of sales may have occurred. Furthermore, the plunge of the virtual currency 'Terra (LUNA)' that occurred in May 2022 and the suspension of withdrawals by Celsius, which handles the lending of virtual currency on June 13, 2022, have given confidence in the virtual currency. I presume that it was a factor that further impaired.
Around 11:00 on June 13, Celsius suddenly announced that it would suspend all withdrawals, transactions and transfers between accounts on its platform. Celsius said this is the best way to protect the community, 'while protecting assets, we are taking the necessary steps for the benefit of the community as a whole to stabilize liquidity and operations.' Said.
The community responded sensitively to this announcement. The price of the virtual currency token 'Celsius (CEL)' issued by Celsius has dropped by about 57% in one hour from the announcement.
by CoinMarketCap
In addition, Binance, a cryptocurrency exchange, suspended Bitcoin (BTC) withdrawals on the Bitcoin network at 21:00 on June 13. Binance explained, 'Insufficient Bitcoin transaction fees resulted in unprocessed transactions, which caused withdrawals to be suspended.' After that, withdrawals are resumed around 2 o'clock on the 14th. It was thought that it was affected by the announcement that Celsius was suspended, but Binance described the cause as a 'technical problem.'
We were repairing several minor hardware failures on wallet consolidation nodes earlier today, which caused the earlier transactions that were pending to be broadcast to the network after the nodes were repaired.
— Binance (@binance) June 13, 2022
Tether, which issues the cryptocurrency of the same name, also said, 'It is an unfortunate result of market fluctuations and extreme market conditions. It is possible to invest a small part of our shareholders' equity in Celsius in Tether's investment portfolio. Although included, there is no correlation between this investment and our reserves or stability and it does not affect our reserves. '
Not only virtual currencies, but also the stock prices of companies that have adopted virtual currencies are declining, and the stock price of MicroStrategy, a software company that has accumulated more than 129,000 BTC (about 370 billion yen) of Bitcoin in the past two years, is 25%. The plunge, Block, a payment company founded by former Twitter CEO Jack Dorsey, fell 13%, crypto mining Marathon Digital Holdings fell 12%, and Riot Blockchain fell 10%.
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in Posted by log1p_kr