The value of bitcoin collapsed in December 2020 amid a general sell-off in risky assets. As of the morning of June 14, the most famous cryptocurrency was worth less than $23,000, writes Bloomberg.
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The “bearish” trend in the market of risky assets is connected with macroeconomic factors – high inflation and plans of the Federal Reserve System of the USA to increase the interest rate in order to restrain the growth of prices. This will increase the value of traditional investment assets and reduce the attractiveness of risky ones, such as crypto.
The cryptocurrency market has been in turmoil since mid-May when the algorithmic stablecoin TerraUSD and its related cryptocurrency Luna collapsed. On Monday, the Celsius crypto network added fuel to the fire by suspending the ability to withdraw funds. Charts for all coins are available on the bti.live
Monday was a black day for everything, including the cryptocurrency market. Not one of the top 100 cryptocurrencies on CoinMarketCap’s list was in the green zone, making the current crash one of the most comprehensive on record.
The head of the Bank of England, Andrew Bailey, warned investors that yesterday’s collapse is yet another indication of the riskiness of investing in cryptocurrencies. “If you want to invest in these assets, fine. But be prepared to lose all your money,” Bailey said by Yahoo Finance.
“People still want to buy them because they have extrinsic value — people value things for personal reasons — but they don’t have intrinsic value,” the banker stated.