Bitcoin Price Crash Record Low Ethereum Bloodbath Continues Why Crypto Prices Are Falling What Mudrex Investors Should Do Edul Patel

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Bitcoin price crashed this week to an 18-month high. On Monday, BTC fell to around $25,600 and has shown no signs of recovery since. At the time of writing, Bitcoin stood at $22,726, according to data from CoinMarketCap. According to Indian exchange WazirX, the Bitcoin price stood at Rs 18.91 lakhs. This marks a massive decline of around 80% from Bitcoin’s all-time high of $68,000. This follows a global bloodbath in the crypto market seen in May when the collapse of US dollar-pegged stablecoin TerraUSD wiped out $60 billion of investor wealth. In this article, we will see why crypto prices have fallen again and what investors should keep in mind in the current scenario.

Bitcoin price crash: How much have Bitcoin and Ethereum lost in the last 24 hours?

According to CoinMarketCap, the Bitcoin price is down 7.69% in the past 24 hours. The highest value of BTC this year so far has been around $49,000, as seen in March. It appears to have lost over 50% of its value in just over two months.

Bitcoin, the world’s largest crypto, has been down for 12 consecutive weeks now, subsequently dragging most other tokens down with it.

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Ethereum, the second most valuable cryptocurrency after BTC, fell 2.98% over the same period. At the time of writing, the price of ETH stands at $1,224.67. The price of ETH in India stood at Rs 1.01 lakhs.

Bitcoin Price Drop: Why Are Crypto Prices Falling?

Edul Patel, CEO and co-founder of crypto trading platform Mudrex, told ABP Live: “The crypto market has been under pressure from the [US] Federal Reserve, raising interest rates to fight inflation in recent months. Bitcoin suffered a broad selloff following data showing that US inflation hit a 40-year high over the weekend.

Analysts have suggested that Bitcoin could hit a low of $14,000 this year if current trends continue. Patel, however, noted that “there can be no definite timeline or certainty that this will happen.”

According to multiple reports, the main result of the recent crypto crash is the suspension of all withdrawals by crypto lending platform Celsius.

ALSO ON ABP LIVE: Celsius blocks withdrawals due to ‘extreme market conditions’

The company informed its clients on Monday: “Due to extreme market conditions, we are announcing today that Celsius is suspending all withdrawals, swaps and transfers between accounts.”

The platform has built its user base by offering high returns of up to 18.63% on deposits. By May, Celsius had lent more than $8 billion and managed nearly $12 billion (all of which is now blocked). Its own token, CEL, also lost value, dropping from $7 to just 33 cents last year.

“We are taking this action today to put Celsius in a better position to meet, over time, its withdrawal obligations,” the company’s memo said on Monday, raising concerns among investors about the creditworthiness of the company. the society.

Another crypto credit company, BlockFi, will lay off “about 20%” of the workforce. “This decision was driven by market conditions that negatively impacted our rate of growth and a rigorous review of our strategic priorities,” the company founders said in a blog post.

Exchange platform Crypto.com will lay off around 5% of its workforce, CEO Kris Marszalek tweeted. “We will continue to assess how best to optimize our resources to position ourselves as the strongest builders during the bear cycle in order to become the biggest winners in the next bull run,” Marszalek wrote.

Bitcoin Price Crash: When Will the Market Recover?

“We have seen many Bitcoin corrections since 2011, but Bitcoin has come back strong. It has historically been observed that bear markets usually dip quickly and never last long,” Patel said. “It is only a matter of time that may require a price rebound. The current bear market could likely continue for the next few weeks as it still hasn’t recovered from the previous month’s correction.

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Bitcoin price crash: What should investors keep in mind now?

Given the current scenario, Patel advises investors “looking to source cryptos can DCA.” For those unaware, DCA, or Cost Average, is a long-term strategy that can help reduce the impact of market volatility by regularly investing small amounts in an asset. There is no fixed schedule for the DCA. It can last for a few months or even a few years, depending on the objectives of the investors.

“At the same time, others should closely monitor market movements rather than engaging in impulse buying activity,” Patel warned.

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