Crypto-crash: digital assets in the midst of a “storm”, Cryptocurrencies

In the world of cryptocurrencies, experts often say that when an asset has lost 99% of its value, it can drop another 99%. For several weeks the holders of digital tokens have felt they have hit rock bottom, but the days go by and they seem the same: bitcoin has lost 27% in a week and almost 70% from the record of 10 November 2021, the date on which it had reached $ 69,000. Except that yesterday it dropped to $ 20,822 to a minimum, and then rose slightly. This morning he was in possession of $ 22,400.

According to Simon Peters, market analyst at eToro, this sudden drop is due to aa “fear of accelerating inflation in the United States”he said in a press release. US monthly inflation fell from 8.5% to 8.3% in April, suggesting that price increases had “peaked”, but a new high of 8.6% on Friday shook markets. equity and crypto. “

He believes that the correlation with the stock market is increasingly marked: “A large part [de la chute] it is due to institutional holders calibrating their risky assets in a similar way, whether they are tech stocks or bitcoin. “

Craig Erlam, market analyst at Oanda, shares his view on the macroeconomic aspect. According to him, we entered a “Cost of living crisis”. He still believes that the change of tone at the European Central Bank, which has finally decided to raise the benchmark rates, affects the cryptocurrency market.

Celsius accentuates the fall

“The $ 20,000 suddenly looks very vulnerablehe wrote. The worst could still come […] Market conditions were already far from optimal – high risk aversion and anticipation of higher interest rates – but add to that a major cryptocurrency lender blocking withdrawals and it really is the perfect storm. “

It refers to the problems faced by the Celsius company, which specializes in remunerated savings and loans of digital assets. In fact, since yesterday it has suspended withdrawals, which has accentuated the climate of panic on the markets. Worse still, the largest exchange in the world, Binance, is also on pace had to temporarily stop bitcoin transfers. The outage lasted only three hours Monday for the latter, but it is still impossible to recover the money from the former.

“Everything suggests that Celsius would then be insolvent, which would be a new tsunami in the ecosystemjudge Pierre-Yves Dittlot, CEO and founder of Ledgity. […] In this case, we would be dealing with poor risk management, not a questioning of the underlying technology and innovation. “

Recall that bitcoin had already lost 80% of its value after the 2017-2018 bubble. The dramatic year-to-year fluctuations it experiences are not unusual. “A price of 20,000 dollars remains higher than all the periods preceding the year 2021”relativizes Alexandre Stachchenko, blockchain director of KPMG. “The short-term trend is dictated by trends that follow the market, but in the long term, if you look at the fundamentals, bitcoin is on the rise. ” While many savers sadly lost money in this collapse, others are calm and speak calmly on social networks.

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