Bitcoin, Ethereum and many other cryptocurrencies suffered during this month of June 2022. Inflation, added to bugs on certain platforms, largely pulled the curves down.
Cryptocurrencies are suffering. In this month of June 2022, bitcoin and many other cryptoassets saw their value collapse against the backdrop of a technical problem. The crypto market experienced a significant low with a drop below the 1000 billion dollar mark, while the value was almost three times higher about 6 months ago.
Inflation undermines confidence
On the side of bitcoin, the star of cryptocurrencies, the value is around $23,000, against a peak of more than $67,000 in November 2021. The same thing on the side of Ethereum which rose from a peak of 4800 $ 6 months ago to a valuation around $1220 today. As remarked The echoes, the most famous cryptocurrencies have lost 25 and 35% of their value in the last 7 days. The trend is the same everywhere, as evidenced by charts from the BitcoinPrice site.
This collapse in the value of cryptoassets is partly linked to inflation. In the United States as elsewhere, inflation indicators jumped 8% in June. Fearing increased regulation to control this price increase, large investors have reduced their investments in the crypto sector, preferring to invest in the good old dollar, seen as a safe bet.
Binance and Celsius blocked
But that’s not all. Technical glitches and arbitrary decisions by major crypto wallets have also undermined public and professional confidence in bitcoin and other cryptocurrencies. On June 13, 2022, the asset management site Celsius announced that it was blocking all cryptocurrency withdrawals and transfers on its platform. The fall in the market forced the company to temporarily freeze transactions in order to “stabilize cash and operations while taking steps to preserve and protect assets“, writes the firm.
Binance, the largest cryptocurrency exchange by volume, also experienced a bug on the same day. Changpeng Zhao, the boss of the company, explained that asset withdrawals on the platform were made impossible on the morning of the 13th due to a “stuck” transaction in the pipes which created a delay in processing transactions. The incident, which lasted about 3 hours – compared to the 30 minutes initially announced – prevented cryptocurrency owners from making bitcoin withdrawals in some cases. This is enough to undermine confidence in cryptos a little more in an already particularly difficult period.