Next we are going to review the current prices of BTC and ETH and what reasons there could be to explain these latest falls.
Strong weekly falls for Bitcoin and ETH
If we talk about Bitcoin, the main cryptocurrency has dropped almost 20% in the last 7 days. BTC started last week with a value of 31,200 dollars (29,751 euros), while right now it barely exceeds 25,000 dollars (23,839 euros). Bitcoin, which started the year above $47,000, has thus reached its lowest value in all of 2022, a year that has not been easy for the crypto market.
BTC weekly chart (June 6-13)
Bitcoin cae a its lowest level since the end of 2020. The token’s market capitalization has also plunged below $500 billion. While the latest round of BTC losses was triggered by US inflation data, a combination of other negative indicators sparked strong selling over the weekend. Rising inflation is now expected to cause a larger-than-expected interest rate hike by the US Federal Reserve this week, creating more headwind for Bitcoin.
In the case of the Ethereum network cryptocurrency, it also reached even the lowest price in the whole year 2022. It is currently trading at a value of about $1,200.
ETH weekly chart (June 6-13)
Ethereum price could potentially drop below $1,150 due to heavy selling and pressure in the crypto market. DeFi analytics firm Parsec Finance has stated that if ETH drops to $1,150, it risks liquidating nearly $500 million of on-chain collateral. Therefore, the price could fall further below that figure.
In the meantime, stETH continues to unlink itself from ETHwith the current price trading at $1,217 vs. $1,277 for Ethereum as of 10:00 AM (CEST).
Celsius adds fuel to the fire
One of the main reasons to understand this latest disaster is Celsius. Troubles in the DeFi space also worsened crypto sentiment as Celsius suspended withdrawals due to a severe liquidity crunch. the signature Celsius Network will stop withdrawals and transfers between accounts due to “extreme market conditions”, the company announced this very Monday, in the latest sign of pressure on the cryptocurrency industry. Following the announcement, CEL, the native token of Celsius Network, is facing intense selling pressure falling 45% and falling to $0.20.
Celsius
“Due to extreme market conditions, today we are announcing that Celsius will be pausing all withdrawals, trades, and transfers between accounts. We are taking this action today to put Celsius in a better position to meet its retirement obligations over time.”
