Today, the cryptocurrency market experienced panic selling after U.S. inflation data hit a new high. 1 In addition, global market concerns have contributed to the vulnerability of cryptocurrencies.
As a result, the price of Bitcoin fell by $24,000, down 14% today. This is Bitcoin’s lowest level since December 2020. The second-largest cryptocurrency, ether, fell more than 15 percent to hover around $1,200. The combined market capitalization of all cryptocurrencies fell below $1 trillion as of Monday morning due to the carnage in the crypto market, according to CoinMarket Cap.
As if that wasn’t enough, investors also took another hit today when crypto lending platform Celsius announced 4
It suspended all withdrawals and transfers between accounts. It said “extreme market conditions”5 forced the company to take this step.
Central thesis
- Bitcoin fell below $24,000 and Ether fell below $1,300.
- The new inflation high has sparked the current crypto market sell-off.
- The crypto world took another hit when crypto lending firm Celcius announced it would suspend all withdrawals and transfers between accounts.
Current trends suggest that investors are moving away from risky assets due to global market conditions and inflation. The tightening of monetary policy by the Federal Reserve has wreaked havoc on cryptocurrencies, especially due to their volatility. In addition, the collapse of Terra (LUNA) and TerraUSD (UST) also attracted a lot of attention from investors.
Final result
The continuous bad news from the crypto world has triggered FUD (Fear, Uncertainty and Doubt) among investors. Crypto enthusiasts tweeted their concerns via #cryptocrash and asked when the carnage would end. Experts think 6 things could get worse.
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