Crypto market cap below $1 trillion for the first time since January 2021
cryptocurrency, bitcoin newsThe global crypto market cap has slipped below $1 trillion for the first time since January 2021. According to data from CoinMarketCap on June 14th at 4PM, the total market cap currently stands at $944.78 billion, down 3.57% from the previous day.
The price of bitcoin (BTC) has also dropped significantly. The price of the popular cryptocurrency has fallen for almost 12 straight weeks, from around $49,000 in March to nearly $21,000. In the past 7 days, the price of bitcoin is up more than 24% to the south.
At 4 p.m., bitcoin was priced at $22,507.14 and a market cap of $429 billion, after falling more than 6% over the past 24 hours. The data shows that Bitcoin dominance is currently at 45.29%, a decrease of 1.66% during the day.
Bitcoin reached an all-time high of over $68,000 in November 2021 and has since fallen by more than 60%.
According to CoinMarketCap, Ethereum, second only to Bitcoin by market cap, was below $1,200 at 4 p.m. and had a market cap of $144 billion. The price of Ethereum is down by over 30% in the last 7 days.
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The downturn in the crypto market has wiped out tens of billions of dollars. The prices of bitcoin and other crypto-assets have fallen by 20 to 40% in the past seven days. Investors are selling riskier assets like digital currencies amid fears that the Federal Reserve may aggressively hike interest rates later this week as US inflation hits a 40-year high of 8.6%.
Abhijit Shukla, CEO and Director, Tarality said that the current state of the crypto market is like a mirror situation of the global market.
“Given the current situation, investors fear that the Federal Reserve may increase interest rates at any time. The proposed visit of the US President to Saudi may give some positive signs in terms of energy prices in the recent future.
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This is the second notable collapse for the cryptocurrency in less than two months. Stablecoin Terra exploded in early May, wiping away tens of billions of dollars in a matter of hours. Stablecoins are considered relatively safe, as they are believed to be backed by hard assets such as currency or gold.
Celsius stopped the evacuation
Meanwhile, crypto lending platform Celsius Network has announced that it is stopping all withdrawals, citing ‘extreme market conditions’. “Due to extreme market conditions, today we are announcing that Celsius is halting all withdrawals, swaps and transfers between accounts,” the firm wrote in a memo to clients.
Celsius Network has 1.7 million subscribers and $11.8 billion in assets. It is not clear whether Celsius depositors will get all their money back.
A cryptocurrency lender is not regulated like a bank, so there is no deposit insurance and no legal framework to get your money back first, such as in bankruptcy.