{"id":49908,"date":"2022-06-14T06:45:19","date_gmt":"2022-06-14T06:45:19","guid":{"rendered":"https:\/\/harchi90.com\/bitcoin-btc-crashes-as-celsius-fallout-liquidity-crisis-weigh\/"},"modified":"2022-06-14T06:45:19","modified_gmt":"2022-06-14T06:45:19","slug":"bitcoin-btc-crashes-as-celsius-fallout-liquidity-crisis-weigh","status":"publish","type":"post","link":"https:\/\/harchi90.com\/bitcoin-btc-crashes-as-celsius-fallout-liquidity-crisis-weigh\/","title":{"rendered":"Bitcoin (BTC) Crashes As Celsius Fallout, Liquidity Crisis Weigh"},"content":{"rendered":"
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Bitcoin<\/strong>, Ethereum<\/strong> and other major coins nosedived on Monday evening as the global cryptocurrency market cap fell below the psychologically important $ 1 trillion mark to $ 944.9 billion – a decline of nearly 12.5% \u200b\u200bintraday.<\/p>\n

\n <\/p>\n <\/p>\n <\/p>\n <\/p>\n <\/p>\n <\/p>\n <\/p>\n
Price Performance Of Major Coins<\/caption>\n

<\/p>\n

Coin<\/th>\n

<\/p>\n

24-hour<\/th>\n

<\/p>\n

7-day<\/th>\n

<\/p>\n

Price<\/th>\n


\n\t\t<\/tr>\n

\n\t<\/thead>\n

<\/p>\n

Bitcoin<\/strong> BTC \/ USD<\/span><\/td>\n

<\/p>\n

-15.7%<\/td>\n

<\/p>\n

-28.3%<\/td>\n

<\/p>\n

$ 22,460.32<\/td>\n


\n\t\t<\/tr>\n

<\/p>\n

Ethereum<\/strong> ETH \/ USD<\/span><\/td>\n

<\/p>\n

-16.4%<\/td>\n

<\/p>\n

-35.1%<\/td>\n

<\/p>\n

$ 1,204.60<\/td>\n


\n\t\t<\/tr>\n

<\/p>\n

Dogecoin<\/strong> DUKE \/ USD<\/span><\/td>\n

<\/p>\n

-15.65%<\/td>\n

<\/p>\n

-34.5%<\/td>\n

<\/p>\n

$ 0.05<\/td>\n


\n\t\t<\/tr>\n


\n\t<\/tbody>\n


\n<\/table>\n<\/figure>\n

\n <\/p>\n <\/p>\n <\/p>\n <\/p>\n <\/p>\n <\/p>\n <\/p>\n
Top 24-Hour Gainers (Given via CoinMarketCap)<\/caption>\n

<\/p>\n

Cryptocurrency<\/th>\n

<\/p>\n

24-Hour% Change (+\/-)<\/th>\n

<\/p>\n

Price<\/th>\n


\n\t\t<\/tr>\n

\n\t<\/thead>\n

<\/p>\n

Fantom<\/strong> (FTM)<\/td>\n

<\/p>\n

+ 6.25%<\/td>\n

<\/p>\n

$ 0.24<\/td>\n


\n\t\t<\/tr>\n

<\/p>\n

Theta Network<\/strong> (THETA)<\/td>\n

<\/p>\n

+ 5.4%<\/td>\n

<\/p>\n

$ 1.15<\/td>\n


\n\t\t<\/tr>\n

<\/p>\n

Decentraland<\/strong> (MANA)<\/td>\n

<\/p>\n

+ 4.3%<\/td>\n

<\/p>\n

$ 0.825<\/td>\n


\n\t\t<\/tr>\n


\n\t<\/tbody>\n


\n<\/table>\n<\/figure>\n

See Also: <\/em>How To Get Free NFTs<\/em><\/p>\n

Why It Matters: <\/strong>Risk assets were in freefall on Monday, with cryptocurrencies following the trajectory of stocks, which remained under pressure after the latest round of US inflation data.<\/p>\n

The S&P 500 closed in the bear territory on Monday and is now down 20% from its all-time high of 4,818 touched in January. The Nasdaq ended Monday 4.7% down at 10,809.23. Futures for the respective indexes were 0.24% and 0.4% higher at press time.<\/p>\n

Investors are anxiously looking out for the next two-day Federal Open Market Committee meeting slated to begin Tuesday. <\/p>\n

There are expectations the US Federal Reserve<\/strong> will be more aggressive with rate hikes than expected. Goldman Sachs<\/strong> expects 75-basis point rate increases in June and July. Barclays<\/strong> and Jefferies<\/strong> have made a 75 basis point hike prediction for June, reported Reuters. <\/p>\n

Data from the CME Group<\/strong> indicates that the market expects a 90.9% probability that rate hikes will be in the 75 basis point region.<\/p>\n

On the cryptocurrency side, a fall in liquidity due to tightening is marring investor sentiment, but digital assets are suffering a double whammy.<\/p>\n

OANDA senior market analyst Edward Moya<\/strong> said, \u201cSentiment for cryptos is terrible as the global crypto market cap has fallen below $ 1 trillion dollars. Bitcoin is attempting to form a base, but if price action falls below the $ 20,000 level, it could get even uglier. “<\/p>\n

GlobalBlock analyst Marcus Sotiriou<\/strong> touched on the insolvency fears surrounding one of the largest cryptocurrency lending platforms, Celsius<\/strong>in a note on Monday. <\/p>\n

\u201cThey were heavily exposed to [TerraClassicUSD<\/strong>\u00a0(USTC)] with around $ 500 million of client funds, and also lost around $ 50 million, when DeFi protocol Badger DAO was exploited. “<\/p>\n

\u201cThe biggest problem Celsius have currently seems to be their $ 1.5 billion position in stETH – 1 stETH is a claim on 1 ETH locked on the Beacon chain. At the moment, stETH is trading at a discount of more than 5% to ETH, which raises concerns that if clients try to redeem positions, Celsius will run out of liquid funds to pay them back, \u201dwrote Sotiriou.<\/p>\n

StETH is an ERC20 token that represents staked Ether in Lido.<\/p>\n

Sotiriou said Celsius is taking \u201cmassive loans\u201d against its illiquid positions to pay for redemptions by customers but could run out of funds within 5 weeks.<\/p>\n

Bitcoin and cryptocurrency investor Lark Davis<\/strong> tweeted that we will begin to see \u201cbig liquidations\u201d on decentralized finance platforms.<\/p>\n

“This could mean hundreds of millions of [Ethereum] and [Bitcoin] market sold into a weak market driving prices lower. “<\/p>\n

<\/p>\n

We are getting to the point where we are going to start seeing some big liquidations on defi platforms. This could mean hundreds of millions of $ eth<\/a> and $ btc<\/a> market sold into a weak market driving prices lower.<\/p>\n

Stay safe guys!<\/p>\n

– Lark Davis (@TheCryptoLark) June 13, 2022<\/a><\/p><\/blockquote>\n

Lead insights analyst Will Clemente<\/strong> tweeted that he didn’t catch the absolute bottom and said it was a \u201cgreat time\u201d to allocate heavily with a broad time horizon.<\/p>\n

\u201cI’ve wanted to buy these levels of valuation for 2 years and not going to adjust my targets lower now that we’re here,\u201d said Clemente on Twitter.<\/p>\n

<\/p>\n

Odds are I don’t catch the absolute bottom, which is fine with me. Probabilistically a great time to allocate heavily with a broad time horizon IMO.<\/p>\n

I’ve wanted to buy these levels of valuation for 2 years and not going to adjust my targets lower now that we’re here.<\/p>\n

– Will Clemente (@WClementeIII) June 13, 2022<\/a><\/p><\/blockquote>\n

Delphi Digital<\/strong> said in a blog on Monday that higher rates and tighter financial conditions have not been \u201chistorically kind\u201d to Bitcoin.<\/p>\n

Kevin Kelly<\/strong>an analyst for Delphi Digital, wrote “Bitcoin and the broader crypto market are not isolated from macro risks, most notably those related to global liquidity and financial conditions.”<\/p>\n

Bitcoin-Dollar Performance Amid Tighter Monetary Conditions – Courtesy Delphi Digital<\/em><\/p>\n

\u201cHistory suggests it isn’t rate hikes that adversely impact BTC as much as tighter liquidity conditions and heightened market volatility associated with strong risk-off sentiment,\u201d Kelly wrote.<\/p>\n

Read Next: <\/em>Here’s What Bitcoin’s Crash Could Mean For Tesla<\/em><\/p>\n<\/div>\n