Srinagar, June 19: Crypto investors have been facing a tough time since the inception of the Russia Ukraine war.
Also Read: Crypto carnage: Bitcoin breaks $19k, Ethereum below $1k
But the situation has turned especially dire in the last few weeks. On June 19, 2022, Bitcoin (BTC), the largest cryptocurrency, fell to $18,000. It is over 70 per cent lower than its peak price of $64,000 in November 2021. In the last 24 hours alone, it had fallen over 11 per cent, however, bounced back from lows. Other cryptocurrencies like Ethereum, Cordano, Avalanche and Dogecoin have also fallen.
Why are crypto prices falling?
Crypto prices have been falling due to a major sell-off by the investors. As the digital token has no intrinsic value, it is currently guided largely by only demand factors. With the bank rates rising, the investors are taking refuge in the bank deposits to save their money, pulling their investment out of the cryptocurrencies.
Along with this, the high inflation and projected recession among major western economies, have also put digital tokens under high pressure. It is for the first time since the launch of these tokens, that they have to face such macroeconomic uncertainty.
As of 10 PM (IST), Bicoin (BTC) was trading at $19,500, Ethereum (ETH) was trading at $1,057, according to WazirX.
What to expect?
The crypto investors may be in trouble if the macroeconomic factors do not improve in the coming days. The carnage is not limited to the crypto market. Several share markets across the globe have lost 5 per cent of their value in the last week, including India’s Nifty. Indian share markets fell to the yearly low last week.
