Bitcoin has experienced a deafening drop due to US policy. The rate of the main cryptocurrency of the world rolled back to the level of 2020

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The global crypto market collapsed sharply after the fall in the bitcoin rate. In just a day, it fell in price by 15%, falling to the values ​​of November-December 2020. Everything that happens is a consequence of the mass sale of tokens arranged by traders. They fear tough measures from the US Federal Reserve to curb inflation in a country that has broken a 40-year record. These measures may affect the liquidity of virtual money.

Steep dive for bitcoin

The bitcoin rate has rapidly collapsed to the level of the end of 2020, writes Bloomberg. According to the profile resource Coindesk, it fell down to $20.83 thousand. This price is calculated by CoinDesk based on the XBX index, the spot rate of bitcoin. The index value is calculated based on the observed trading activity on the largest crypto exchanges.

Thus, the main cryptocurrency of the world set a new anti-record rate of depreciation, given the fact that in November 2021 its price reached $68.99 thousand. This was the highest rate since the appearance of bitcoin in 2008.

Having collapsed down, bitcoin, according to a long-established tradition, dragged along with it all the other more or less significant cryptocurrencies. On June 13, 2022, he fell in price by 15% in just a day, while Solana fell in price by 19%. Ethereum, Avalanche and Dogecoin fell even more rapidly – ​​they lost 20% of their value in 24 hours.

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The total capitalization of the cryptocurrency market is also extremely far from its maximum values. Like the bitcoin rate, compared to November 2021, it has approximately tripled – from more than $3 trillion to less than $1 trillion (CoinGecko statistics). Analysts cannot yet predict when and at what level this fall will stop.

It’s all the Americans’ fault

According to Bloomberg, US regulators are to blame for another rapid impoverishment of crypto investors this time. According to the publication, the US Federal Reserve System (FRS) may be preparing very tough measures to combat inflation in the country, which in May 2022 was the highest in the last 40 years.

Back in early May 2022, the Fed raised federal bonds by 50 basis points at once, which happened for the first time since 2000. This decision of the regulator, as well as the collapse of the Luna cryptocurrency in May 2022 and the expectation of new tough measures to combat inflation, forced traders to start massively get rid of virtual money, which led to their rapid depreciation.

As for Luna, it is directly linked to the TerraUSD stablecoin, which was pegged to the fiat US dollar. In mid-May 2022, it instantly depreciated to zero after losing this peg. Before the crash, its price reached $100. According to analysts, the incident led to the total losses of investors, measured in billions of US dollars.

First Consequences

The collapse of bitcoin, the rate of which, in fairness, is still far from zero, has become a real problem for companies that work with cryptocurrency in one way or another. For example, shares of MicroStrategy Inc. fell by 25%. She develops software and buys bitcoins along the way as part of her corporate strategy.

No one can predict how the bitcoin rate will behave in the short term

Securities of Block Inc., founded by the creator of Twitter Jack Dorsey (Jack Dorsey). Collapsed by 15%, and shares of bitcoin miners Marathon Digital Holdings Inc. and Riot Blockchain Inc. fell by 12% and 10% respectively.

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Binance, the largest cryptocurrency trading platform, has temporarily suspended withdrawals from the Bitcoin network, citing some problems with transaction processing. Analysts attribute this to the fall in cryptocurrency rates.

Mass redistribution of the crypto market

The crushing collapse of the cryptocurrency exchange rate could be the beginning of large-scale changes in the global token market, which was predicted by analysts in early June 2022. How informed CNews, it consists in reducing the total number of virtual currencies from the current 19 thousand to just a few dozen.

According to experts, in this redistribution, completely unknown tokens will disappear first, and then slightly more popular ones. As a result, only the most popular cryptocurrencies will remain at the present time.

When this will happen, analysts are yet to say. In the meantime, bitcoin has recovered slightly from the fall. At 12:20 pm on June 14, 2022 Moscow time, its rate rose to $22.54 thousand.



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