Bitcoin seems to be making a welcome break for millions of investors.
The most popular cryptocurrency regained some life: the price was $ 19,735.89, an increase of 4.4% in the last hour at the time of writing, according to data company CoinGecko.
Bitcoin fell to $ 17,677.43 on June 18, before recovering somewhat to $ 18,290.75. The digital currency then extended its recovery after billionaire and crypto evangelist Elon Musk tweeted that he was currently buying a Dogecoin meme.
“I will continue to support Dogecoin,” Musk wrote on June 19.
“It’s me,” I buy.
Musk’s tweet sparked a real market rebound, which saw the post of the world’s richest man as a sign of renewed confidence in cryptocurrencies, while there are many questions about the future of many projects and companies.
Ether, the second cryptocurrency by market value, rose 6.5% to $ 1,058.60 in the last hour. Ethereum’s native token fell to $ 881 the day before, its lowest level since January 2021.
Ether and bitcoin together account for just over 55% of the value of the crypto market, which often changes depending on their price. The crypto market as a whole rose 3.7% to $ 972 billion in the last hour.
In the last seven days, bitcoin has lost 30.1% of its value and ether 30.8%. But compared to its highest value of $ 69,044.77 for all time, reached on November 10, bitcoin is down 72.1%, while Ether is down 79.2% compared to its highest level for all time – $ 4,878.26 – found the same day.
The reasons for the collapse are the same: fears of a recession are prompting investors to liquidate risky assets. Cryptocurrencies and technology groups are considered as such.
“Many people in the #crypto industry say this collapse is a healthy shock,” economist and crypto critic Peter Schiff wrote on Twitter. “I agree it’s healthy, but not for cryptocurrency. This industry as we know it is dead, which is very healthy for the economy. Crypto probably has a future, but #Bitcoin will not be part of it.”
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“Terrible” crypto news series
The crypto market has also been rocked by various scandals.
The first is the sudden collapse of the UST and Luna sister tokens, although their founders promise that their technology is solid and viable.
The second scandal is the June 12 decision by crypto lender Celsius Network to freeze withdrawals and other transactions from its platform. Since then, there have been rumors of a potential Celsius insolvency that has not yet dispelled them.
Then, on June 17, crypto financial services company Babel Finance said it was temporarily suspending withdrawals and buyouts in the latest blow to the cryptocurrency sector.
“Due to the current situation, Babel Finance is facing unusual pressure on liquidity,” the company said in a statement. “We are in close communication with all related parties about the actions we are taking to best protect our customers.”
During this period, the statement continued, “purchases and withdrawals of Babel Finance products will be suspended and the resumption of normal service will be notified separately.”
Babel Finance is described as “one of the largest providers of services to cryptocurrency market institutions”.
Three Arrows Capital (3AC) has confirmed rumors that there are very serious financial difficulties after his investment in projects such as Luna turned into a disaster.
“We are committed to finding a fair solution for all our constituents,” crypto hedge fund co-founder Kyle Davis told the Wall Street Journal.
“The flow of news has been terrible for crypto,” said Edward Moya, senior market analyst for North and South America at Oanda. of cryptocurrency companies. “
Mine said bitcoin has declined, “because the appetite for risk has left Wall Street, as investors are worried about a much faster deterioration in the US economy.”
“Rising fears of a recession are crippling appetite for risky assets, and crypto traders are wary of buying bitcoins at these low levels,” he said.
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